Statoil’s plans for development and operation (PDO) of Njord and Bauge fields in the Norwegian Sea have been approved by Norway's Ministry of Petroleum and Energy.
Following approval, Njord A platform and Njord Bravo floating storage and offloading vessel (FSO) will be upgraded to procure the remaining resources available in the Njord and Hyme fields.
Bauge is a new field to be developed and tied to the Njord A platform.
Statoil project development head Torger Rød said: "The investments, totalling Nkr20bn ($2.34bn), will trigger high activities and spin-offs for the Norwegian society and Norwegian supply industry."
The Njord and Hyme fields contain another 175 million barrels of oil equivalent.
Njord field began production in 1997 and is expected to produce for another 20 years as the partners have decided to upgrade and reuse both the Njord A platform and Njord Bravo FSO.
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At Njord, 54 wells have been drilled from 1997 to 2016, while ten new production wells are planned on the field.
Bauge discovery is expected to host 73 million barrels of oil equivalent. The field development concept will include one subsea template, two oil producers and one water inject.
Rød added: "Kværner at Stord has been awarded the contract for upgrading the platform and work facilitating the tie-in of Bauge and potential future third-party tie-ins."
Next year, the contract for upgrading the Njord Bravo FSO will be awarded, with first oil expected by the end of 2020.
On behalf of partnerships in the Njord, Hyme and Bauge licences, Statoil submitted the PDO of fields in March this year.
Image: The Njord A platform. Photo: courtesy of Thomas Sola/ Statoil.