Norwegian energy giant Statoil has started production for Smørbukk South Extension project, which is located on the Haltenbank in the Norwegian Sea, 200km offshore Norway and 50km south of the firm’s Heidrun field.

Statoil Smoerbukk

The tight oil project, which was sanctioned two and a half years ago, was deemed infeasible and unprofitable initially due to permeability.

Hydrocarbon reserves at the site have been found to be of varying porosity ranging from "bricks to tiles".

The offshore field has been equipped with a combination of wells with long well sections and new completion technology for extraction from the reservoirs. It is expected to generate 16.5 million bbl oil equivalent.

It is also likely to support production from the Åsgard A Floating Production Storage and Offloading vessel (FPSO)

The field was discovered in 1985 and estimated to have a reserve of 16.5 million bbl oil equivalent.

Statoil asset owner representative Ove Andre Pettersen said: "Very few offshore fields have been developed with such low permeability under normal pressure conditions."

A multilateral production well has been drilled, which has around 5200m reservoir exposure, for the offshore project.

Pettersen said: "The project is delivered below the initial sanctioned cost estimate at sanctioning and exactly on the date of startup.

The future of the NCS is to a large degree dependent on cost-efficient development of small but important projects like Smørbukk South Extention."

Image: Installation of Smørbukk South Extension subsea template. Photo: courtesy of Statoil.