Utgard

Utgard Field Profile

Location and Jurisdiction

The Utgard field is located in the central part of the Norwegian sector in the North Sea, straddling the boundary between Norway and the UK. The Norwegian share of the field is 62%, with the remaining 38% located in the UK Continental Shelf (UKCS), specifically in Block 16/18a.

Discovery and Development

The Utgard field was discovered in 1982. The plan for development and operation (PDO) was approved in 2017. The field is operated by Equinor (previously Statoil).

Geology and Reservoir

The Utgard field produces gas with high CO2 content and some condensate, primarily from the sandstone of the Middle Jurassic age in the Hugin Formation. Minor hydrocarbon volumes are also found in the Sleipner Formation. The field consists of two main segments (west and east) that are in pressure communication via the aquifer. The main reservoirs are located at a depth of approximately 3700 metres.

Development Concept

The development concept involves a 4-slot subsea template with two wells tied-back to the Sleipner T facility for processing and reduction of the CO2 level in the gas. The subsea template is located in the Norwegian sector. The wells were drilled using an anchored semisubmersible mobile drilling unit (MoDU), with the top hole sections drilled with water-based mud (WBM) and the lower sections drilled with low toxicity oil-based mud (LTOBM).

Production

Production from the Utgard field started in 2019. The well stream from the field is processed at the Sleipner T facility. The sales gas is exported via the Gassled pipeline system (Area D), while the unstable oil is transported by pipeline via Sleipner A to the Kårstø terminal for further processing and export. Currently, only the well in the eastern segment is producing, as the well in the western segment has been watered out. Plans are in place to sidetrack both wells in 2023/2024 to increase recovery from the field.

Production Strategy

The Utgard field is produced using a pressure depletion strategy. However, due to early water breakthrough, production has been on decline, necessitating the planned sidetracking of the wells to enhance recovery.

Environmental Considerations

The development of the Utgard field involves several environmental considerations, including seabed disturbance, atmospheric emissions, discharges to sea, interactions with other sea users, and spill risk. The Environmental Statement (ES) identified potential impacts on fish and seabirds, but these were deemed to be localized and temporary. Various regulatory bodies, including the Joint Nature Conservation Committee (JNCC), Marine and Coastal Access Act (MCA), and the Ministry of Defence (MoD), did not raise any objections to the development plans.

Infrastructure and Timeline

• Subsea Template Installation: Commenced in Q2 2018.
• Drilling: Scheduled for Q3 2018.
• Pipeline and Umbilical Installation: Scheduled for Q2 2019.
• Production Start-up: Anticipated and achieved in Q4 2019. The development of the Utgard field is expected to span approximately 11-12 years, with production anticipated to last around 9-10 years.

Regulatory Approvals

The Norwegian Petroleum Directorate granted consent for the start-up of production from the Utgard field in 2019. The development project also underwent a thorough environmental review and received necessary approvals from relevant UK and Norwegian authorities.