Statoil has announced that the production from the subsea Fram C East well, offshore Norway, has commenced to the Troll C platform.

As a result of improved technology and drilling efficiency,  the firm stated that the project has not only been able to save capital exenditure, but will be able to maximise production from the Fram area, in addition to boosting Troll C production and activities.

The Norwegian firm reported that the cost of Fram C East was able to drop by 24% to $24m (Nkr200 million) from the initial estimate of $97m (Nkr800 million).

"Fram C East is a small development project, but a key element of our plans to capture maximum value in the Fram area."

Fram C East is a long production well drilled from the existing Fram subsea template. Troll C is an important North Sea hub.

Troll and Fram vice-president of operations Lars Høier said: “Fram C East is a small development project, but a key element of our plans to capture maximum value in the Fram area.”

Høier also added: “We are pleased to see that our targeted efforts to cut costs and improve profitability on the Norwegian continental shelf (NCS) have benefitted this development project. Fram C East has seen profitability rise from good to even better, and will see a positive cash flow as early as in 2016.”

Gas will be transported to Kollsnes through Troll A, while oil will be sent through pipes to Mongstad for further processing.

Fram C East is 45% owned by Statoil, 25% by ExxonMobil, 15% each by Engie and Idemitsu.