Norway-based multinational oil and gas company Statoil, along with its partners, has reached a decision to construct an oil export pipeline for the Edvard Grieg and Ivar Aasen fields in North Sea.

The company and its partners will invest NOK2.1bn ($343.5m) in 43km and 28in Edvard Grieg oil pipeline to transport oil produced from the Edvard Grieg field to the Grane oil pipeline, which runs to the Sture terminal.

Statoil is a partner in both fields and operator of the joint venture (JV) for oil transport.

The JV partners for the pipeline are Lundin Norway, Statoil as the operator, Wintershall Norge, Det norske oljeselskap, OMV Norge, and Bayerngas Norge with 30%, 20%, 18%, 14%, 12%, and 6% interest, respectively.

The partners have already awarded contracts related to the pipeline work.

The JV has selected J.P Kenny (Stavanger, Norway) for the detail engineering work, Welspun (Anjar, India) for pipe steel production, Bredero Shaw (Leith, Scotland) for pipe corrosion and weight coating, and Allseas (Delft, the Netherlands) for pipeline installation.

Pipeline production will be completed in 2013, coating is scheduled for completion in 2014, installation of new Y connection point in the Grane oil pipeline will be carried out in the second quarter of 2014, while tie-in operations will be performed in 2015.

Finally, the pipeline will be ready for production in the late third quarter or early fourth quarter of 2015.

The transport solution is a precondition for the development of the Edvard Grieg, which is operated by Lundin, and Ivar Aasen, which isoperated by Det norske oljeselskap fields.

The fields Edvard Grieg and Ivar Aasen are scheduled to start production in 2015 and 2016, respectively.