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Released August 07, 2019 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Norway's energy major Equinor (NYSE:EQNR) has announced that the Trestakk oil field in Haltenbanken in the Norwegian Sea has started production and announced that it has decided to invest in a water injection plant on the Gudrun field to improve reservoir recovery.
Trestakk, which is tied back to the Asgard A floating production vessel, has estimated recoverable resources of 76 million barrels of oil. Field production started on time, below budget and without any serious incidents, the company said. When approved by the authorities in 2017, the investment was set at NOK 5.5 billion ($627 million), but on startup the costs had fallen to NOK 5 billion ($570 million). Trestakk field development covers a subsea template with four well slots and one satellite well. A total of five wells will be drilled: three for production and two for gas injection. It is capable of producing around 22,000 barrels of oil per day now and at peak production this will double to around 44,000 barrels of oil per day. Trestakk field production is expected to last for 12 years.
"Together with our partners ExxonMobil (NYSE:XOM) and Vår Energi we spent ample time on maturing Trestakk, and with proper assistance by our main supplier TechnipFMC (NYSE:FTI), we arrived at a good and profitable concept with development costs nearly halved before the investment decision was made. This proves that it is important and correct to spend sufficient time in the early phase of a project," explained Anders Opedal, executive vice president for Technology, Projects and Drilling at Equinor.
Trestakk will also extend the life of Asgard A, which was due to discontinue this year before receiving a life extension to 2031 from the Petroleum Safety Authority Norway and the Norwegian Petroleum Directorate.
"The Trestakk volumes are important for us to maintain profitable operation of Asgard A and to recover more of the original Asgard volumes. Our draft for development of the Norwegian continental shelf points to the need for new reserves, and this is the kind of project we would like to see many more of in the years to come," says Arne Sigve Nylund, executive vice president for Development and Production Norway.
In related news, Equinor and its Gudrun field partners have committed to invest in a water injection plant to improve reservoir recovery and extend the field life by three years compared to the original plan. The water injection project will produce water from the Utsira formation and re-inject it into the reservoir for pressure support and increased production. In addition, a new production well will be drilled. Industrial Info is tracking three projects connected with Phase II of the development of Gudrun. The field came on-stream in 2014, and seven wells are currently in production. Gudrun, located in the middle of the North Sea, holds about 184 million barrels of oil equivalent. Oil and gas are transported from the field to the Sleipner A platform.
Marit Lunde, vice president for Gudrun operations in Development & Production Norway, said: "This is a good example of how we secure long-term activity on the Norwegian continental shelf. Based on deeper understanding of the reservoir and technology development, we are able to increase the recovery rate and value creation from the field while extending the field life to 2032, three years longer than originally scheduled in the plan for development and operation (PDO)."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
Trestakk, which is tied back to the Asgard A floating production vessel, has estimated recoverable resources of 76 million barrels of oil. Field production started on time, below budget and without any serious incidents, the company said. When approved by the authorities in 2017, the investment was set at NOK 5.5 billion ($627 million), but on startup the costs had fallen to NOK 5 billion ($570 million). Trestakk field development covers a subsea template with four well slots and one satellite well. A total of five wells will be drilled: three for production and two for gas injection. It is capable of producing around 22,000 barrels of oil per day now and at peak production this will double to around 44,000 barrels of oil per day. Trestakk field production is expected to last for 12 years.
"Together with our partners ExxonMobil (NYSE:XOM) and Vår Energi we spent ample time on maturing Trestakk, and with proper assistance by our main supplier TechnipFMC (NYSE:FTI), we arrived at a good and profitable concept with development costs nearly halved before the investment decision was made. This proves that it is important and correct to spend sufficient time in the early phase of a project," explained Anders Opedal, executive vice president for Technology, Projects and Drilling at Equinor.
Trestakk will also extend the life of Asgard A, which was due to discontinue this year before receiving a life extension to 2031 from the Petroleum Safety Authority Norway and the Norwegian Petroleum Directorate.
"The Trestakk volumes are important for us to maintain profitable operation of Asgard A and to recover more of the original Asgard volumes. Our draft for development of the Norwegian continental shelf points to the need for new reserves, and this is the kind of project we would like to see many more of in the years to come," says Arne Sigve Nylund, executive vice president for Development and Production Norway.
In related news, Equinor and its Gudrun field partners have committed to invest in a water injection plant to improve reservoir recovery and extend the field life by three years compared to the original plan. The water injection project will produce water from the Utsira formation and re-inject it into the reservoir for pressure support and increased production. In addition, a new production well will be drilled. Industrial Info is tracking three projects connected with Phase II of the development of Gudrun. The field came on-stream in 2014, and seven wells are currently in production. Gudrun, located in the middle of the North Sea, holds about 184 million barrels of oil equivalent. Oil and gas are transported from the field to the Sleipner A platform.
Marit Lunde, vice president for Gudrun operations in Development & Production Norway, said: "This is a good example of how we secure long-term activity on the Norwegian continental shelf. Based on deeper understanding of the reservoir and technology development, we are able to increase the recovery rate and value creation from the field while extending the field life to 2032, three years longer than originally scheduled in the plan for development and operation (PDO)."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
