Projects

Snorre Oil and Gas Field Expansion Project

The Snorre expansion (SEP) project is a proposed expansion of the Snorre field located in blocks 34/4 and 34/7 of the Tampen area, approximately 200km west of Florø in the Norwegian North Sea.

Project Type
Expansion
Location
North Sea, Norway
Operator
Statoil
Ownership
Statoil (33.28%), Petoro (30%), DEA Norge AS (8.57%), ExxonMobil Exploration and Production Norway (17.45%), Idemitsu Petroleum Norge (9.6%), and Point Resources (1.1%)
Estimated Investment
Nkr19.3bn (approximately $2.3bn)
Start of Production
2021

The Snorre expansion (SEP) project is a proposed expansion of the Snorre field located in blocks 34/4 and 34/7 of the Tampen area, approximately 200km west of Florø in the Norwegian North Sea.

The project is expected to increase the field production life by 30 years, up to 2040.

Snorre field was discovered in 1979 and has been producing since August 1992.

It has produced more than 208 million standard cubic metres (Sm³) of oil, nine million standard cubic metres of natural gas liquids (NGL), and minor amounts of gas and condensate as of the end of 2016.

The current field license is due to expire in July 2018.

Statoil holds 33.28% stake in the asset and operates the field on behalf of its partners, which include Petoro (30%), DEA Norge (8.57%), ExxonMobil Exploration and Production Norway (17.45%), Idemitsu Petroleum Norge (9.6%) and Point Resources (1.1%).

Statoil submitted the plan for development and operation (PDO) of the expansion to the Minister of Oil and Energy in December 2017.

Both the PDO and the license extension approval are anticipated to be granted in June 2018.

First production from the Nkr19.3bn (approximately $2.3bn) expansion is expected in 2021.

Snorre field geology and reserves

Snorre field is estimated to contain 276 million standard cubic metres of oil, including 63 million standard cubic metres that is yet to be produced.

The expansion project is slated to enable the recovery of a further 31 million standard cubic metres of oil.

The majority of the remaining reserves are contained in several complex faults of the Lundeformation and Statfjord Group, which are recoverable through a large number of wells.

Snorre field expansion details

The expansion project will be carried out in three parts, including the installation of new subsea templates, upgrades to the Snorre A facility and the import of gas to improve oil recovery from the field.

“Snorre field is estimated to contain 276 million standard cubic metres of oil, including 63 million standard cubic metres that is yet to be produced.”

The facilities will increase the recovery rate at the field from the current 46% to 51%.

In addition, the expansion will see the installation of six large subsea templates with four wells each.

The templates will provide a total of 24 new well slots, including 12 that will be used for production, while the remaining 12 will be used for alternating water / gas injection.

Facilities will be provided for tie-in of additional subsea templates, while pipelines and umbilicals between the subsea templates and Snorre A will also be laid.

The project will upgrade the Snorre A platform to receive production from the new subsea templates and to supply injection water and gas to the subsea templates.

Installation of the subsea templates is expected to start in 2019, with the drilling and completion of wells taking place year-round during 2019-2024.

Production and processing

A total of five wells are expected to commence production initially and produced gas from SEP will be reinjected in order to improve oil recovery.

Additional gas will be imported from the Gullfaks A platform for pressure support purposes and to facilitate better drainage of the reservoir.

Produced oil will be processed using the existing equipment at the Snorre A platform.

The Snorre A and Snorre B platforms will provide power for the site during operation.

Contractors involved

TechnipFMC (formerly FMC Technologies) was awarded the engineering, procurement & construction (EPC) contract for the expansion project.

The contractual scope includes the delivery of six subsea templates and related subsea production equipment.

Aibel was awarded a contract worth approximately Nkr1.6bn ($191.2m) to conduct extensive modifications to the Snorre A platform.

The company was also engaged to carry out the front-end engineering design (FEED) for the modifications in December 2016.

Wood Group was contracted to carry out the FEED study for the subsea flowline system.

Statoil engaged Subsea 7 to fabricate and install the pipeline bundle system for the expansion project, while Transocean was contracted to supply a rig for the development.

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