Statoil ASA said it has started production from the Fram C East well. Technology and improved drilling efficiency helped slash costs for the Norwegian North Sea development designed to maximize production from the Fram area and boost Troll C platform production.
The development originally was estimated to cost $97 million, but expenses were reduced to $72.8 million, Statoil said.
Fram C East is a long production well drilled from the existing Fram subsea template. Production is tied back to Troll C, Statoil reported Aug. 24. Natural gas will be transported to Kollsnes via Troll A. Oil will move by pipeline to Mongstad for processing.
Lars Hoier, Statoil vice-president operations for Troll and Fram, said, “Fram C East is a small development project, but a key element of our plans to capture maximum value in the Fram area.” He believes Fram C East could yield a positive cash flow yet this year.
Statoil holds 45% interest in Fram C East. Partners are ExxonMobil Corp. 25%, Engie 15%, and Idemitsu 15%.
Fram C East was discovered in 2007. Oil was found in the Middle Jurassic reservoir rocks (OGJ Online, Jan. 15, 2008).