Statoil and its partners have submitted the plan for development and operation (PDO) and the field development plan (FDP) to Norwegian and the UK authorities for its Utgard field in the North Sea.
The company estimates recoverable reserves at the gas and condensate discovery to be 56.4 million barrels of oil equivalent, and capital expenditures at about Nkr3.5bn ($258m).
Utgard was discovered in 1982 and previously known as Alfa Sentral, and is located 21km from the Sleipner field.
Statoil project development senior vice-president Torger Rød said: “Utgard is the first Statoil development in many years producing resources across the median line, and we are pleased to have found good solutions that address considerations for good resource management on both sides.
“Good and efficient cooperation across the board, both in relation to partners and government authorities, has made this development possible.”
Utgard straddles the UK-Norway median line and the majority of the reserves will be located on the Norwegian side.
The field development will include two wells in a standard subsea concept and one drilling target will be on each side of the median line. The wells are set to come on stream at the end of 2019.
In the plateau phase, Utgard is expected to produce about 7,000 standard cubic metres per day of oil equivalent.
The UK well is planned to be drilled from the subsea template on the Norwegian continental shelf.
A new pipeline will be used to transfer gas and condensate to the Sleipner field for processing and will be further transported to the market.
The Utgard gas has a high CO2 content and will benefit from carbon cleaning and storage at Sleipner.
Image: The Utgard field was discovered in 1982 and is located 21km from the Sleipner field. Photo: © Statoil.