Norwegian energy firm Statoil ASA (STO) has commissioned third of its fast track field project off Norway, with the commencement of production from the Vigdis North East oilfield in the southern North Sea.
The total investment cost for the development of the project, which has a reservoir structure situated in the very north of the Vigdis field, is NOK 4.3 billion ($750.8 million). The field is being developed through a subsea installation, in a water depth of 290 meters consisting of a template with four wells that are attached to the existing Vigdis facility on Snorre A for processing.
Located in the North Sea, 7 kilometers south-east of the Snorre A platform - the Vigdis North East oilfield – has yielded its first oil nearly four years after being discovered in 2009, although it has been only 18 months since the Oslo authorities approved its development plan. The field life is expected to be more than 15 years.
The yield, after being processed at Vigdis, will be exported through the existing Snorre A transport system. Statoil, the operator of the field is exploring the field’s recoverable reserves estimated at around 37 million barrels of oil equivalent.
Statoil has a 41.5% interest in the license, while state holding firms Petoro, ExxonMobil Corporation (XOM), Idemitsu and RWE Dea hold 30%, 16.1%, 9.6% and 2.8%, respectively.
Statoil targets to bring five fast-track projects online in 2013, with Hyme and Visund South fields already commissioned earlier. The company is striding ahead in an aggressive manner with its fast-track program, which is well equipped to produce making use of nearby infrastructure. As part of its endeavor to enhance recovery from existing fields, it will also utilize standardized subsea technology.
Statoil carries a Zacks Rank #3, which is equivalent to a short-term Hold rating. However, there are other stocks in the oil and gas sector – Range Resources Corporation (RRC) and EPL Oil & Gas, Inc (EPL) – which hold a Zacks Rank #1 (Strong Buy) and are expected to perform better.
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