Norway’s Statoil has announced a NOK40bn ($6.79bn) project to build a new drilling and processing platform at its Snorre field in the North Sea, in a bid to extract another 300 million barrels of oil.

Total investments include platform, infrastructure and drilling of wells, while the latest announcement is also aimed at extending the improved oil recovery (IOR) project lifetime to 2040.

With a capacity of 140 single cabins, the new platform will drill 40 new wells for production and injection of water and gas and the drilling facility will have a reach of 7,000m.

Statoil evaluated the ‘Snorre 2040’ project with detailed examination of two development concepts, which include a subsea development with continued use of the Snorre A and B platforms, or a development with a new platform that is tied to them. Statoil’s Norwegian shelf executive vice president said the platform solution is an alternative for maximising production and creating the best possible value.

"Snorre 2040 is an important improved oil recovery (IOR) project and supports our ambition of achieving an average oil recovery rate of 60% from our fields on the Norwegian shelf," Michelsen added.

Snorre 2040 is said to support the company’s ambition of achieving an average oil recovery rate of 60% from its fields on the Norwegian shelf.

Snorre field reserves are estimated to be 1.55 billion barrels of oil at present. According to the company, the new drilling and processing platform will also facilitate a tie-in of new discoveries in the area.

Statoil holds 33% in the Snorre licence and other partners include Petoro (30.0%), ExxonMobil E&P Norway (17.44596%), Idemitsu Petroleum Norge (9.6%), RWE DEA Norge (8.57108%) and Core Energy (1.1074%).

Snorre 2040 comprises a new platform to boost drilling capacity, which is a minimum process tension leg platform (TLP) that is similar to the Snorre A and Heidrun platforms.

The company is planning a pipeline from Gullfaks or Visund for gas imports, which will be injected into the reservoir from all platforms on the Snorre field and could be transported to land for sale at the end of the field’s lifetime. The final development concept decision is expected in the first quarter of 2015.

Image: Statoil will build a drilling and processing platform on the Snorre field in the North Sea. Photo courtesy of Statoil.