Statoil ASA and its partners have submitted to Norwegian and UK authorities the plan for development and operation (PDO) and the field development plan (FDP) for the Utgard gas and condensate discovery in the North Sea.
Recoverable reserves from Utgard are estimated at 56.4 million boe, and capital expenditures are projected at about $415 million. Discovered in 1982, Utgard, formerly Alfa Sentral, is 21 km from Sleipner field, straddling the UK-Norway median line. The majority of reserves are on the Norwegian side.
The Utgard development will include two wells in a standard subsea concept, with one drilling target on each side of the median line. With all installations and infrastructure in the Norwegian part of the sea, the UK well will be drilled from the subsea template, 450 m from the median line on the Norwegian continental shelf.
Statoil in June agreed to acquire 45% interest in the UK portion of the license from JX Nippon Oil & Energy Corp. (OGJ Online, June 3, 2016). That deal followed the acquisitions of 31% equity share in the UK license for Utgard from Repsol SA, and 24% interest from First Oil Expro Ltd. (OGJ Online, Dec. 11, 2015).
Gas and condensate will be transported through a new pipeline for processing at Sleipner, where Utgard gas, high in carbon dioxide content, will undergo carbon cleaning and storage. Statoil notes the reuse of existing infrastructure is essential to the development of Utgard.
Utgard wells are scheduled to come on stream at yearend 2019. In the plateau phase, the field will produce 7,000 cu m/day of oil equivalent.