Published On: Tue, Mar 13th, 2018

Statoil to invest $642m for further development of Snohvit field in Norway

Tagged with: | | | | | |

Oil and gas industry news : Statoil and its partners will invest a little over NOK 5 billion ($642 million) for further development of the Snohvit field in offshore by bringing the Askeladd field into production to supply feedstock for the Hammerfest LNG plant at Melkoya.

The development of the Askeladd field in the will be the second part of the multi-phased Snohvit development project, which saw the Snohvit and the Albatross gas fields brought into production in 2007 during its first phase.

According to Statoil, the Askeladd development will provide 21 billion cubic metres of gas along with two million cubic metres of condensate to the Hammerfest LNG plant.

The Norwegian company expects to begin production at the Askeladd gas field by the end of 2020.

Statoil plans to develop the Askeladd gas field with three wells through a couple of new subsea templates with space for more wells in the long run. Additionally, an infrastructure will be installed by Statoil and its partners to tie-in the Askeladd development to existing infrastructure at the Snøhvit gas field.

Illustration of Statoil's Askeladd field development in offshore Norway, in the Barents Sea.

Illustration of Statoil’s Askeladd field development in offshore Norway, in the Barents Sea. Photo courtesy of Statoil ASA.

Commenting on the development of the Askeladd field, – senior vice president for Statoil’s operation north, said: “Operation of Hammerfest LNG at Melkøya requires new, profitable gas volumes to be phased-in at the right time in the period leading up to 2050.

“This is also a good example of the long-term approach of our industry, and the plant will create attractive jobs for young people in the oil and gas industry for many years to come.”

Aker Solutions has been given a contract to supply the two subsea templates for the Askeladd development. Statoil said that it will award more contracts in the near future.

The Norwegian oil and gas giant is the operator of the Snøhvit development with a stake of 36.79%. Its partners are Petoro (30%), (18.40%), Norge (12%) and DEA Norge (2.81%).

Related posts