Statfjord Øst

Field Overview

Name: Statfjord Øst Location: The field is situated in the Tampen area of the North Sea, approximately 5-7 kilometres northeast of the Statfjord field and tied to the Statfjord C platform.

Discovery and Production History

• Discovery: Statfjord Øst was discovered in 1977 by Norskald.
• Production Start: The field began production on 23 September 1994.

Geology and Reservoir

• Reservoir Formation: The field produces oil from Middle Jurassic sandstone in the Brent Group, with the reservoir located at a depth of approximately 2400 metres. The reservoir has good quality.
• Hydrocarbon Deposits: The hydrocarbon-bearing sediments were deposited in the Jurassic era, about 150 million years ago.

Development and Infrastructure

• Development Plan: The field was developed with two subsea production templates and one water injection template, tied back to the Statfjord C platform via flowlines. Two production wells were also drilled from Statfjord C.
• Subsea Templates: The field has three subsea templates (K, L, and M), with the K structure for water injection and the other two handling oil production.
• Gas Lift Project: A recent project included installing a pipeline from Statfjord C to Statfjord Øst for gas lift, and drilling five new wells (including sidetracks) with gas lift and new Christmas trees. Modifications were made on Statfjord C to deliver gas lift and improve the reception of higher production.

Production and Recovery

• Original Recovery Rate: The original oil recovery rate was 58%.
• Enhanced Recovery: Following the recent life extension project, the expected recovery rate has increased to 63%.
• Production Increase: The project is expected to raise production by 26 million barrels of oil equivalent, with an estimated value of around NOK 20 billion at current oil prices.

Partners and Ownership

• Licence Partners:
  • Equinor Energy AS: 29.25%
  • Petoro AS: 30%
  • Vår Energi ASA: 20.55%
  • Okea ASA: 14.0%
  • INPEX Idemitsu Norge AS: 4.8%
  • Wintershall Dea Norge AS: 1.4%.

Economic and Operational Aspects

• Investment and Costs: The investment decision was made in August 2020, with an initial investment of NOK 3.0 billion, later increased to NOK 3.5 billion due to additional wells and higher production.
• Project Timeline: The project was completed by the end of 2023, six months ahead of schedule, despite challenges from inflation and a weakened Norwegian krone. It was delivered with good safety outcomes and under budget.
• Profitability: The project is highly profitable, contributing to extending the life of Statfjord C to 2040 and providing significant economic benefits and ripple effects for Norwegian suppliers.

Recent Developments

• Life Extension Project: The recent life extension project involved drilling two new wells from existing subsea templates and planning for three additional wells. This project aims to maximize value creation from existing infrastructure on the Norwegian continental shelf (NCS).

Transportation and Export

• Transport: The well stream is transported in two pipelines to the Statfjord C facility for processing, storage, and export. Oil is loaded onto tankers, and gas is exported through the Tampen Link and the Far North Liquids and Gas System (FLAGS) pipeline to the UK.

In summary, the Statfjord Øst oil project is a significant undertaking that enhances the production and recovery rates of an existing field, leveraging advanced technologies and efficient project management to extend the field's life and maximize economic benefits.