The flank lies about 6km north-west of the Njord platform. The development solution comprises two new extended-reach wells. Drilled directly from the platform with 8km of well paths, the wells will be tied back to the platform.

Stale Tungesvik, senior vice president for reserve replacement and business development at Statoil, said: “This is an example of how we can use existing infrastructure in a prospective area to maximize the potential of the Norwegian continental shelf.”

The reservoir contains both rich gas and condensate and comprises two structures, A and B, discovered in 2007 and 2000 respectively.

Since the pressure in Njord’s north-west flank is slightly higher than in the main reservoir, modifications will have to be made on the platform to handle this. Total investments will amount to NOK1.8bn.

The contracts will embrace engineering, procurement and construction of new equipment including risers and new elements for the process and drilling unit. Plans call for most of these to be put out to tender in the second half of 2010.

The modifications will mainly be carried out under the terms of the existing frame contracts.