Statoil and its partners have chosen a concept for the Skrugard development in the Barents Sea that includes a floating production unit with a pipeline to shore and a terminal for oil from the Skrugard field at Veidnes outside Honningsvåg in Finnmark.
Statoil’s Øystein Michelsen, executive vice president for Development and Production Norway (DPN), said the field is scheduled to come on stream in 2018.
The Skrugard and Havis field discoveries that make up the Skrugard development will have a common infrastructure. Production from Skrugard and Havis will be tied in to a semi-submersible floating installation through a subsea production system located in about 380 meters of water. The production is estimated at almost 200,000 bopd.
The oil will be transported through a 280-km pipeline from Skrugard to Veidnes outside Honningsvåg from where it will be piped to an oil storage facility and stored in two mountain caverns. The oil will then be sent via pipeline to the quay for transportation by tankers. An estimated 50-100 crude tankers per year are expected to call at the terminal.
“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 in the future,” Michelsen said.
Statoil’s exploration campaign will consist of nine new prospects in the Barents Sea to be drilled during 2013-2014. The campaign will start in the Skrugard area where four new prospects will be drilled.
“We have evaluated the neighboring area associated with the 22nd licensing round and see upside potentials in the license. 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 said.
Statoil is operator of the project and holds a 50% interest along with ENI, 30% and Petoro, 20%.