Statoil to Boost Norway's Snohvit Output
Statoil and its partners have decided to invest just over Nkr 5bn ($640mn) in the further development of the Snohvit field in the Barents Sea, it said March 12. It is the source of gas for the LNG plant at Melkoya in Hammerfest – Europe's first liquefaction plant for the export market. The development of Askeladd is part two of the multi-phased Snohvit development, Statoil said.
The Askeladd development will supply 21bn m³ of gas and 2mn m³ metres of condensate to Hammerfest LNG and production is scheduled to come on stream towards the end of 2020. It will be developed with three wells via two new subsea templates with space for additional wells and be tied in to Snohvit. Aker Solutions has been awarded the contract for the two subsea templates. Additional contracts will be awarded in the following months.
“Askeladd will help maintain a plateau production rate at the Hammerfest LNG plant until 2023 and is a profitable investment that will help secure jobs and ripple effects in the region,” Statoil said. Snohvit contains enough gas to maintain production beyond 2050, and Hammerfest LNG will provide jobs for many years to come,” it added.
Snohvit LNG plant
Credit: Statoil
The multi-phased development of Snohvit was covered in the plan for development and operation which was approved by the authorities in 2002. The partnership has already begun working on the next steps.
“Operation of Hammerfest LNG at Melkoya requires new, profitable gas volumes to be phased-in at the right time in the period leading up to 2050. This is also a good example of the long-term approach of our industry, and the plant will create attractive jobs for young people in the oil and gas industry for many years to come,” Statoil said.Hammerfest LNG is a highly efficient LNG plant as CO2 is reinjected, and there is a combined heat and power unit that supplies the energy needs at Melkoya. The Askeladd development will contribute to increased activity at the Polar Base in the project period.