A simple, smart concept and increased offshore oil drilling efficiency have shaved some NOK 200 million off the capital expenditures of this already resilient development project after the investment decision.
The development helps maximise production from the Fram area, in addition to boosting Troll C production and activities.
Fram C East is a long production well drilled from the existing Fram subsea template. Production will be tied back to Troll C, an important North Sea hub.
Gas will be transported to Kollsnes via Troll A, whereas oil will be piped to Mongstad for further processing.
Originally estimated at some NOK 800 million capital expenditures have now been reduced to some NOK 600 million thanks to a simple, smart well concept and significantly increased drilling efficiency.
Statoil has a long-standing record of infrastructure development on the NCS, which is key to the profitability of small-size development projects.
Last week Statoil submitted the Plan for Development and Operation of Byrding (north of Fram) together with another partnership. Production from this field, too, is tied back to the Troll C platform.
Capital expenditures totalling some NOK 600 million, recoverable resources are estimated at 18.2 million barrels of oil and 1.6 billion sm3 of gas. Profitability is resilient with a low break-even.