Statoil planning oil terminal at Veidnes

Statoil and its partners have chosen a development concept for the Skrugard field in the Barents Sea. The concept includes a floating production unit with a pipeline to shore and a terminal for oil from the Skrugard field at Veidnes outside Honningsvåg in Finnmark. The field is scheduled to come on stream in 2018.

"The decision to bring Skrugard oil ashore at Veidnes is a key element of the further development of Norwegian oil and gas industry. This may spark off a new industrial era. This concept choice will facilitate further exploration and help make any future discoveries profitable," says Øystein Michelsen, executive vice president for Development and Production Norway (DPN).

280-kilometre pipeline

The Skrugard and Havis assets will have a common infrastructure. Production from Skrugard and Havis will be tied in to a semi-submersible floating installation through a subsea production system located in about 380 metres of water. The production is estimated at almost 200,000 barrels of oil equivalent per day. The oil will be transported through a 280-kilometre pipeline from Skrugard to Veidnes outside Honningsvåg. It will be piped directly to an oil storage facility and stored in two mountain caverns. The oil will be sent from there in a pipeline to the quay for transportation by tankers. Some 50-100 crude tankers per year are estimated to call at the terminal.

"This is part of the ambition of making Northern Norway the country's next big petroleum region. We are pleased to have selected a good concept and hope that this may form the basis for a valuable partnership with local authorities and industry also in the future," Michelsen says.

In 2011-2012 Statoil and its partners discovered Skrugard and Havis, which are two independent structures within the same licence and represent the Skrugard field development. 400-600 million barrels of recoverable oil have been proven in this area.

Extensive exploration

Statoil's exploration campaign will consist of nine new prospects in the Barents Sea to be drilled during 2013-2014. The campaign will start in the Skrugard area, where four new prospects will be drilled.

" We have evaluated the neighbouring area associated with the 22nd licensing round, and see upside potentials in the licence. We see additional opportunities beyond the four planned wells. Because of this potential it is important to have a concept which also ensures the necessary flexibility to tie in future discoveries to the Veidnes oil terminal," Michelsen says.

Skrugard facts (PL532)

• Location: The Barents Sea in blocks 7219/9 and 7220/4,5,7, about 100 km north of Snøhvit, 150 km from Goliat and nearly 240 km from Melkøya. The water depth is 360-390 metres, 7 km between Skrugard and Havis.
• The discovery: Skrugard April 2011, Havis January 2012
• Volumes: Preliminary volume estimates are in the range of 400 – 600 million barrels of oil. This is considered to be a prospective area.
• Timeframes: Ambition is to select the concept in 2013, deliver a PDO in 2014 and start production in 2018. Will contribute considerable volumes in 2020.
• Investments: Not ready until an investment decision is made
• Partners: Statoil operator (50%), ENI 30%, Petoro 20%

Skrugard / Snohvit / Goliat map  © Statoil

Source: Statoil
Published in PennEnergy
Feb 8, 2013

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