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Statoil submits plan for new North Sea oil development

The plan comes as oil companies are cutting spending to weather long-term low oil prices.

Statoil ASA has submitted a development plan for the Utgard gas and condensate field on the maritime border between the UK and Norway in the North Sea.

Recoverable reserves are estimated at 56.4 million barrels of oil equivalent and capital expenditures are projected to reach around 3.5 billion kroner, or US $414 million. The plan comes after the majority-Norwegian state owned operator acquired JX Nippon’s 45 percent share in the field in June.

Roughly 60 percent of the reserves at Utgard are located on the Norwegian side of the maritime border, where Statoil holds a 62 percent interest.

“Utgard is the first Statoil development in many years producing resources across the median line, and we are pleased to have found good solutions that address considerations for good resource management on both sides,” said Torger Rød, Statoil’s Senior Vice President for Project Development.

“Good and efficient cooperation across the board, both in relation to partners and government authorities, has made this development possible.”

The development of Utgard will include two wells in a standard subsea concept, with one drilling target on each side of the median line. All installations and infrastructure will be located in the Norwegian sector, with the UK well to be drilled from the subsea template on the Norwegian continental shelf.

Production, which will be processed through the Sleipner platform, is expected to start at the end of 2019.

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