Norway-based Statoil ASA (STO) has proposed to extend the lifetime of its veteran Statfjord A platform – the oldest producing offshore facility in Norway – to 2020.
Since the Statfjord field went online in 1979, it has produced over 4.7 billion barrels of oil equivalent. In 2013, the field produced 80,000 barrels of oil equivalent per day.
Statoil’s efforts will increase Statfjord’s production life to about 40 years. Statfjord is thus likely to be in operation when the massive Johan Sverdrup field is brought online in late 2018.
The company also targets to further enhance commercial reserves at the North Sea field through a possible extension of production from the Statfjord B and C facilities to 2025.
The latest extension agreed to by Statoil and its partners forms part of the Statfjord Late Life project that is expected to involve an investment of NOK 23 billion ($3.7 billion). It relates to lift gas recovery through development of the oilfield’s gas resources.
The project entails an active drilling program with plans of drilling about 11 wells by the end of 2013 and another 10 new wells in 2014.
So far, the partners have recovered a record 66% of oil from the field compared with the original plan of 40% and a global average of 35%. Statoil aims to recover 74% of the gas from Statfjord.
Statoil, the operator, holds an interest of 44.34%. The other partners ExxonMobil Corporation (XOM), Centrica Resources (Norway) AS and Centrica Resources Limited hold 21.37%, 19.76% and 14.53%, respectively.
Statoil carries a Zacks Rank #3 (Hold). However, there are other sector stocks – SM Energy Company (SM) and Western Gas Partners LP (WES) – that hold a Zacks Rank #1 (Strong Buy) and are worth buying now.
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