Norwegian oil company Statoil and its partner Petoro have agreed to invest NOK 8.5bn ($145.29m) to develop the Gullfaks South field located in the North Sea.
The investment will be used to develop two new subsea templates and six extra wells at the development.
In 2008, production stopped in a bid to maintain an acceptable pressure level in the reservoir for future drilling operations.
Existing wells are being reopened in the course of 2012. Now new wells will also be drilled from existing seabed templates on Gullfaks South.
The development is to be implemented as part of Statoil’s fast-track programme to boost recovery by 65 million barrels of oil equivalent.
Halfdan Knudsen, Statoil vice president for fast-track projects, said: "By using the fast-track concept, with standardised solutions and consistent teams in one project, we will improve recovery in an effective manner."
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Jannicke Nilsson, Statoil senior vice president for the operations North Sea west cluster, said the company is making substantial investment in a mature field.
"This is a major commitment to increasing recovery and it is in line with Statoil’s continuous focus on increased recovery in existing fields on the NCS," said Nilsson.
Statoil said the project will use spare processing capacity and in turn extend the lifetime of Gullfaks A beyond 2030.
Image: The Gullfaks A platform in the North Sea. Photo courtesy of: Øyvind Hagen / Statoil.