Longboat Energy, an emerging full-cycle E&P company with activities in Norway and Malaysia, is pleased to note the following announcement made by Equinor confirming the production start for the Statfjord Øst project (Company 4.80%).
On 3 July 2023 the Company announced the acquisition of a 4.80% unitised interest in the Statfjord Øst Unit and a 4.32% unitised interest in the Sygna Unit and where completion is expected before the year end.
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With this project, Equinor and its partners expect to increase production by 26 million barrels of oil equivalents from Statfjord Øst.
The project is completed with sound safety results and is expected to deliver within estimated cost, despite the inflation and weakened Norwegian krone. Production starts six months ahead of schedule.
Two new wells have been drilled from existing subsea templates, and three additional wells are to be drilled. Statfjord Øst is tied to the Statfjord C platform, and the project includes a modification on Statfjord C and laying of a new pipeline for gas lift to the subsea wells.
This is a good example of how we work with mature fields. Equinor aims to be a leading operator of late-life fields on the NCS. That means that we need to find new ways of working to reduce costs. Together with our partners we have developed simpler and faster solutions while maintaining high quality,” says Ketil Rongved, Equinor’s vice president for FLX projects.
The oil recovery rate from the field is expected to rise from 58 to 63 percent as a result from this project. Statfjord Øst started producing in 1994. The field is located five kilometres from Statfjord C.
The project was decided by the partnership in 2020 and approved by the Ministry of Petroleum and Energy in 2021.
“This proves the importance of extending the life of mature fields and maximizing 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,” says Camilla Salthe, Equinor’s senior vice president for Field Life eXtension (FLX).
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The information contained within this announcement is not considered to be inside information prior to its release.
Enquiries:
Longboat Energy
via FTI
Helge Hammer, Chief Executive Officer
Jon Cooper, Chief Financial Officer
Nick Ingrassia, Corporate Development Director
