Statoil's Skrugard field planned on stream in 2018

2/12/2013

Statoil's Skrugard field planned on stream in 2018

BY KJETIL MALKENES HOVLAND

OSLO--Norwegian oil giant Statoil announced a new strategy for delivering oil from the Barents Sea that would involve the construction of a 280-km pipeline and a terminal at the northern tip of Norway.

The terminal would production from the recently discovered Skrugard and Havis fields. Just seven kilometers apart, the two fields have combined resources estimated at between 400 million and 600 million boe. Statoil has not said how much the development will cost.

The oil will be produced with a floating unit and taken to a new oil terminal at Veidnes in the far north of Norway through a 280-kilometer pipeline, Statoil said. The terminal will store the oil in mountain caverns and export it, handling between 50 and 100 tankers a year.

"The decision to bring Skrugard oil ashore at Veidnes is a key element of the further development of Norwegian oil and gas industry. This may spark off a new industrial era," said Oystein Michelsen, Statoil's executive vice president for development and production in Norway. "This concept choice will facilitate further exploration and help make any future discoveries profitable."

Northern Norway is relatively undeveloped and directing some oil operations there could be a boon for the local economy.

Statoil is currently drilling four other prospects in the Skrugard and Havis area and plans to conclude drilling by this summer.

Statoil is the operator of Skrugard/Havis, with a 50% stake. Eni has a 30% stake and state-owned Petoro AS--which manages Norway's direct ownership in oil and gas fields--has a 20% stake.

Dow Jones Newswires

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