The expansion project is aimed to increase production by 26 million barrels of oil equivalents from the satellite field of the Statfjord oil and gas field
Equinor has announced the start of production from the NOK3.5bn ($326.5m) Statfjord Øst expansion project in the Norwegian North Sea.
The Statfjord Øst expansion project involved a modification of the Statfjord C platform. (Credit: Øyvind Hagen / Equinor)
The project is aimed to boost production by 26 million barrels of oil equivalents from the satellite field of the Statfjord oil and gas field. The oil volume originally contained in Statfjord Øst is around 410 million barrels.
As a result of the expansion project, the oil recovery rate from the Norwegian offshore field is likely to increase from the current recovery rate of 58% to 63%.
Tied back to the Statfjord C platform, the Statfjord Øst field began production in 1994.
As part of the Statfjord Øst expansion project, Equinor and its partners drilled two new wells from existing subsea templates. There are plans to drill three more wells.
The project also called for a modification of the Statfjord C platform along with the installation of a new pipeline for gas lift to the subsea wells.
It was announced by Equinor and its licence partners in December 2020. It was sanctioned by the Norwegian Ministry of Petroleum and Energy in 2021.
According to Equinor, the expansion project has been wrapped up with sound safety results and is anticipated to deliver within the projected budget, despite the inflation and the devaluation of the Norwegian krone.
Production, which was expected to begin originally in 2024, has commenced six months ahead of schedule.
Equinor field life eXtension (FLX) senior vice president Camilla Salthe said: “This proves the importance of extending the life of mature fields and maximising value creation from existing infrastructure on the Norwegian continental shelf (NCS). The project contributes to extending the life of Statfjord C to 2040.
“The profitability is high, and the value of increased production equals around NOK 20 billion at the current oil price. This is good use of resources which provide ripple effects for Norwegian suppliers.”
The licence partners in the Statfjord Øst field are Equinor Energy (29.25%), Petoro (30%), Vår Energi (20.55%), INPEX Idemitsu Norge AS (4.8%), Wintershall Dea Norge (1.4%), and subject to the Norwegian government’s approval, Okea will have a 14% stake.