Statoil, partners to invest $5.7 billion in Aasta Hansteen gas field north of the Arctic Circle


Statoil, partners to invest $5.7 billion in Aasta Hansteen gas field north of the Arctic Circle

OSLO -- Statoil has delivered its plan for the development and operation of the $5.7 billion Aasta Hansteen gas field in the Norwegian Sea to the Norwegian government, and also presented its plans for the Polarled pipeline to transport its gas to the mainland.

The field, formerly known as Luva, is expected to produce its first gas in the third quarter of 2017. Plateau production is expected at 130,000 boepd. Statoil estimated the field contains 47 Bcm of gas. By comparison, Norway's total gas production in 2011 was 101.3 Bcm.

"We are happy to take another step in developing activity in the Norwegian Sea together with our partners. Aasta Hansteen will be the first deepwater development in the Norwegian Sea," said Oystein Michelsen, Statoil's director for activity on the Norwegian continental shelf.

The 480-km-long Polarled pipeline will extend Norway's pipeline infrastructure, measuring about 8,000 km long in total, northwards and enable the transport of gas from nearby discoveries, including Zidane and Linnorm, to the Nyhamna gas terminal on Norway's northwest coast.

The pipeline's name has changed to Polarled from Norwegian Sea Gas Infrastructure, which may indicate plans for future extension farther north in the Arctic, toward the Barents Sea, where several new discoveries have been made in recent years, including Skrugard and Havis.

"Polarled will open up a new region and provide for further exploration and development of future discoveries in the area," said Eldar Satre, Statoil's head of mid-stream and downstream activity. "This is an important contribution to maintain the role of the Norwegian continental shelf as a long-term reliable gas producer."

The pipeline bill will be split between operator Statoil and companies OMV, GDF Suez, ConocoPhilips, Edison International, Maersk Oil, Royal Dutch Shell, Total, Gassco and Norwegian state-owned oil company Petoro.

Operator Statoil has a 75% stake in the Aasta Hansteen field, while OMV Norge AS has a 15% stake and ConocoPhilips 10%. The field, at a water depth of 1,300 m, will be developed with a spar platform

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