Statoil Extends Lifetime of "Historical" Platform in North Sea

As exploration costs in the Norwegian Continental Shelf rise, Statoil, Centrica and ExxonMobil decided to extend production from Statfjord A platform until 2020.

“The extension means that Statfjord A will still be in operation when the new giant Johan Sverdrup comes on stream. The size of the Statfjord field is unique, making it a significant part of the history of the Norwegian shelf for 40 years. We will take the experiences from Statfjord with us in our work with Johan Sverdrup, which has a horizon of 40 years," Atle Rettedal, director of production for the Statfjord field, said in a note released on Thursday.

The three companies originally forecasted a 40% recovery rate of the oil in the field. According to Statoil, the outcome so far is 66% and the final goal is to recover 74% of the gas.  

Statfjord, originally an oil field, is now a platform mainly focused on gas exploration. The gas is sent to customers on the Continent and in the UK.

"We are reaping the benefits of the efforts we have invested over many years in that we will now manage to recover even more of the resources in a manner that creates value for the owners and for society," Rettedal explained.

The partnership rebuilt the entire field ten years ago to produce gas.