Statoil to Develop Luva Field

Norwegian Statoil has announced that it will be developing the Luva field in the Norwegian North Sea at a cost of 34 billion crowns ($5.84 billion), including the building of a a floating production unit at the site.

Current estimates for the Luva field puts the total gas reserves at 47 billion standard cubic metres and 0.8 billion cubic metres of gas condensate.

A spokesperson for the company, Ola Anders Skauby, said that the 34 billion crown cost was an initial estimate only, and not the final cost.

"This is an early estimate; a firm figure will be available after we make the concept decision and have a firm development plan," he said.

The development would see the construction of the floating construction unit, and subsea equipment. Work is expected to begin on the project by 2016. 

Statoils holds a 75 per cent stake in the Luva field, with ExxonMobil holding 15 per cent and ConocoPhillips holding the temaining 10 per cent.