Statoil has completed the acquisition of JX Nippon’s 45% equity share and operatorship of the UK licence P312 Block 16/18a for the Utgard gas and condensate field in the North Sea.
The transaction will give Statoil a 100% interest in UK Continental Shelf licence P312.
P312 along with Norwegian Continental Shelf (NCS) licence PL046 consists of the Utgard field.
In October last year, Statoil acquired stakes in P312 from First Oil and in December from Talisman Sinopec. Statoil operates PL046 with a 62% interest.
A final investment decision for the Utgard field is planned before the end of this year and production is expected to begin in 2020.
Previously called Alfa Sentral, Utgard is a gas and condensate field spanning the UK-Norway median line.
The field is planned to be developed as a tie-back to existing infrastructure on NCS for Sleipner, which is operated by Statoil.
Statoil along with its licence partners proposes to develop the Utgard field, which is a trans-boundary field located in the central North Sea in Block 15/8 of the NCS and Block 16/18a of the UKCS.
It is proposed to develop the field by means of two or possibly three wells drilled through a four-slot template located on the NCS about 450m to the east of the median line.
The CO2 content of the Utgard well stream is about 16% and in order to reduce this to a level suitable for blending with the Sleipner export stream, it will be routed through the existing CO2-removal facilities at SLT.
Image: Sleipner field North Sea. Photo: courtesy of Øyvind Hagen / Statoil.