Skrugard

Statoil and its partners have chosen a development concept for its Skrugard field at Veidnes in Finnmark, which includes a floating production unit with a pipeline to shore and a terminal for oil.

As part of the development in the Barents Sea, oil will be transported through a 280km pipeline from Skrugard to Veidnes, outside Honningsvåg.

The oil will be piped directly to a facility and stored in two mountain caverns, following which the oil will be sent in a pipeline to the quay for transportation by tankers.

It is expected that around 50 to 100 crude tankers per year will be required at the terminal to transport the oil.

Development and Production Norway’s (DPN) executive vice president, Øystein Michelsen, said the decision to bring Skrugard oil ashore at Veidnes is an important to developing nation’s oil and gas industry further.

"This concept choice will facilitate further exploration and help make any future discoveries profitable," Michelsen added.

"It is expected that around 50 to 100 crude tankers per year will be required at the terminal to transport the oil."

"This is part of the ambition of making northern Norway the country’s next big petroleum region. We are pleased to have selected a good concept and hope that this may form the basis for a valuable partnership with local authorities and industry also in the future."

The Skrugard and Havis oil field will have a common infrastructure, while the production from both fields will be connected to a semi-submersible floating installation through a subsea production system, which will be located at a depth of about 380 metres.

Production from the fields is estimated to be about 200,000 barrels of oil equivalent per day. In 2011-2012, Statoil and its partners discovered Havis and Skrugard, which is expected to come on stream in 2018.

The fields, which are estimated to contain 400 to 600 million barrels of proven recoverable oil, are two independent structures within the same licence and are part of the Skrugard field development.

During 2013-2014, Statoil’s exploration campaign will include the drilling of nine new prospects in the Barents Sea, while four new prospects will be drilled in the Skrugard area.

"We have evaluated the neighbouring area associated with the 22nd licensing round, and see upside potentials in the licence. We see additional opportunities beyond the four planned wells. Because of this potential it is important to have a concept which also ensures the necessary flexibility to tie in future discoveries to the Veidnes oil terminal," Michelsen added.

Statoil is the operator of Skrugard field with 50% interest, while other partners include Eni and Petoro, holding 30% and 20%.


Image: The concept includes a floating production unit with a pipeline to shore and a terminal for oil from the Skrugard field. Photo courtesy of Statoil.

Energy