Statoil has submitted a revised proposal for development and operation (PDO) of the Njord field and an initial plan the new Bauge field to the Norwegian Minister of Petroleum and Energy Terje Søviknes.
Statoil submitted the plans on behalf of the partnerships in the Njord and Bauge field licences. The firm is operator of both fields and owns 20% stake in Njord and 35% interest in Bauge field licence.
DEA Norge holds 30% interest in Njord that can increase to 50%, and its 17.5% interest in Bauge field can increase to 27.5%. The stakes can increase following receipt of government approval.
Other stakeholders in Njord are Engie E&P Norge AS, Faroe Petroleum and VNG Norge AS, while the remaining stakeholders in Bauge are Point Resources AS, Faroe Petroleum Norge AS, VNG Norge AS.
According to Statoil, new technology and project improvements have enabled the partnership to make new investments in the Njord and Bauge fields in the Norwegian Sea.
Statoil executive vice-president for technology, projects and drilling Margareth Øvrum said: “When we submitted the plan for development and operation for the Njord development 20 years ago, we assumed that the field would be shut down in 2013.
“With new technology, project improvements and close cooperation with the partners and supply industry, we now see opportunities to create considerable value for another 20 years at Njord.”
Capital expenditures for these two projects are estimated to be €2bn.
Øvrum added: "The Njord and Bauge development projects bring new opportunities for the supply industry.
"Both the Njord A platform and the Njord Bravo floating storage and offloading vessel (FSO) will be upgraded. In addition, we will build new subsea facilities, drill new wells and perform extensive marine operations."
Upgrading of Njord installations and development of the Bauge field are important to the industry in mid-Norway and further development of the Norwegian Continental Shelf.
Statoil senior vice-president for operations north in development and production in Norway Siri Espedal Kindem said: “Njord remaining on stream until 2040 is important for our specialist communities in Kristiansund and Stjørdal, as well as Mid-Norway supply industry.
“An upgraded field centre and new infrastructure at Njord will facilitate the development also of other fields in the area.”
Work carried out on the Njord A platform at Kværner Stord will help the tie-back of Bauge, as well as potential third-party tie-ins.
Bauge development will be the first to use the Cap-X technology, a next-generation subsea production system.
Øvrum added: “Cap-X costs less to produce and install. This helps add more value from the Bauge field.”
Njord A and Bravo will be upgraded to recover the remaining resources on the Njord, Hyme og Bauge fields.
Remaining resources on the Njord and Hyme fields are estimated to be 175 million barrels of oil equivalent. The Bauge licence is expected to contain 73 million barrels of oil equivalent.
Both projects are scheduled to commence operations from end of 2020.
Image: The Njord A platform with the Njord B storage and offloading vessel in the background. Photo: courtesy of Øyvind Nesvåg/ Statoil.