The partners in the Njord licence in the Norwegian Sea have resolved to develop the northwest flank of Njord.
This development will increase the total recoverable reserves in the Njord field, secure continued gas exports and extend Njord’s lifetime by up to two years.
The flank lies about six kilometers north-west of the Njord platform. The development solution comprises two new extended-reach wells.
Drilled directly from the platform with eight kilometers of well paths, the wells will be tied back to the platform.
“This is an example of how we can use existing infrastructure in a prospective area to maximize the potential of the Norwegian continental shelf,” says Stale Tungesvik, Statoil’s senior vice president for reserve replacement and business development.
The reservoir contains both rich gas and condensate and comprises two structures, A and B. These were discovered in 2007 and 2000 respectively.
Since the pressure in Njord’s northwest flank is slightly higher than in the main reservoir, modifications will have to be made on the platform to handle this.
Total investments will amount to US $306.4 million (NOK 1.8 billion).
The contracts will embrace engineering, procurement and construction of new equipment including risers and new elements for the process and drilling unit. Plans call for most of these to be put out to tender in the second half of 2010.
The modifications will mainly be carried out under the terms of the existing frame contracts.
Located about six kilometers northwest of the Njord platform, this reservoir is situated on PL 107 in the Norwegian Sea. The estimated volume of the northwest flank that is being developed is 18.6 million barrels of oil equivalent.
Statoil serves as the operator of the license with 20 percent interest. Partners on the Njord project include E.ON Ruhrgas with 30 percent, ExxonMobil with 20 percent, GDF Suez with 20 percent, Petoro with 7.5 percent and VNG with 2.5 percent interest.