Statoil, Petoro and Exxon to tie-back Svalin to Grane
The working interests in Svalin field are shared between:
– Statoil 57% who is the operator
– Petoro 30%
– ExxonMobil 13%
This month, Statoil and its partners submitted their plan for development and operation (PDO) to the Ministry of Petroleum and Energy.
Svalin will produce heavy crude oil as today Grane does.
Svalin will be tied-back to the Grane platform and developed in two parts
– Svalin M well will be drilled from the Grane platform
– Svalin C will be developed sub-sea with a six-kilometre-long flowline to the Grane platform.
Svalin heavy crude oil will share Grane processing and export facilities and will be transported from the Grane platform through the existing pipeline for storage and shipment from the oil terminal at Sture.
Anyway the gas compression unit on the Grane platform will be modified to meet Svalin gas requirements.
Statoil, Petoro and ExxonMobil awarded the engineering, procurement and construction (EPC) contract to:
– Subsea 7 for the pipeline and marine operations
Svalin development capital expenditure is estimated around $750 million (NOK 4.5 billlion)
Statoil “Fast Track” development concept
According to Statoil definition the fast track development refers to projects which may be developed in using only well known solutions and existing infrastructures.
Statoil developed this fast track concept as most oil and gas fields of the Norwegian continental shelf (NCS) are very similar in terms of required sub-sea and offshore technologies.
Beside of the giant fields, most of the new discoveries are related to small oil and gas fields, called marginal fields, which have no chance to be profitable with conventional engineering and development approaches.
These oil and gas marginal fields are numerous in the Norwegian continental shelf (NCS) and request standard solutions to be put in production at minimum capital expenditure and lead time.
Since Statoil production is depleting in the NCS because of the old fields maturing, Statoil must increase production by one third.
These marginal oil and gas fields offer a great opportunity to meet this target in a minimum period of time.
In practice the Statoil fast track concept is based on:
– 50 % reduction of the development time
– Standardize equipment
– Deployment of standard solutions
– Reduce project time frame from 5 to 2.5 years
– Higher profitability
– Maximization of the NCS
Then Statoil launched a first series of fast track projects: Katla, Vigdis Nordøst, Hyme, Visund Nord, Gamma/Harepus, Snorre B template, Fossekall/Dompap and Vilje Sør.
With Svalin, Statoil will have had implemented eight of these fast track projects providing additional 100,000 BOE/d by 2014.
According to Statoil, Petoro and ExxonMobil scedule, Svalin M should be completed at the end of 2013 and Svalin C on mid-summer 2014.