Statoil Gets Green Light for Njord and Bauge Projects

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Norway's authorities have given the green light for Statoil ASA (NYSE:STO) (Stavanger, Norway) and partners to develop the Njord and Bauge oil and gas fields located in the Norwegian Sea.

Industrial Info reported in April that Statoil had submitted plans to the Norwegian minister of petroleum and energy, Terje Søviknes, and the Norwegian Petroleum Directorate to spend $2.3 billion on the projects. For additional information, see April 5, 2017, article - Statoil Reveals $2.3 Billion Investment for Njord and Bauge Fields.

"We are pleased that the authorities have now approved the plans for Njord and Bauge, two important fields on the Norwegian continental shelf," said Torger Rød, Statoil's head of project development. "The investments, totalling NOK 20 billion ($2.3 billion), will trigger high activities and spin-offs for the Norwegian society and Norwegian supply industry."

Statoil said that the Njord A platform and the Njord Bravo floating storage and offloading (FSO) vessel will be upgraded to recover the remaining resources in the Njord and Hyme fields, whereas Bauge is a new field development that will be tied into the Njord A platform. The remaining resources at the Njord and Hyme field are estimated at 175 million barrels of oil equivalent (boe), the same as the reserves already produced from the Njord field since it started production in 1997. In addition, 73 million barrels of oil equivalent will be produced from Bauge.

The Njord field will now continue production another 20 years. Statoil and its Njord partners said they will award the contract for upgrading the Njord Bravo FSO next year. First oil is scheduled for the end of 2020.

In March, Statoil awarded an engineering, procurement and construction (EPC) contract worth in excess of 5 billion kroner ($590 million) to Kvaerner ASA (Oslo, Norway) for the upgrade of the Njord A platform. The floating steel platform, with an integrated deck equipped with drilling and processing facilities, as well as living quarters, is now in dry dock. For additional information, see March 27, 2017, article - Statoil Awards $590 Million Njord A Platform Project.

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