Norwegian oil giant Statoil ASA (STO) aims to extend the life of the Norne field to 2030. Per initial development plans the field was slated to be shut down during 2014.
However, Norne remains in good technical condition owing to its systematic maintenance for 17 years. With a target to improve recovery, Statoil is planning to extend Norne’s life to 2030. The field was commissioned from five subsea templates.
Statoil and its partners EniSpA (E), Petoro and Dong, along with northern Norway, have gained considerably from Norne and its satellites, which have produced about 700 million barrels of oil equivalent so far. Today the recovery factor for the main Norne field is 56.5% that tops production results from subsea fields worldwide.
Several successful exploration campaigns have aided production at Norne. Currently, production flows from full fifteen subsea templates. Among the 26 exploration wells that have been drilled in the Norne licence alone, the five successful ones are the Norne, Stær, Svale, Dompap and Fossekall fields.
In 2013, a total investment of about NOK 10 billion was made for the installation of the last subsea template named the Skuld fast-track project. Additionally, the Alve field and the Eni-operated Marulk field have been tied in to the Norne FPSO.
During 2014 several studies have been conducted by Statoil, Polarkonsult in Harstad and Aker Solutions in Tromsøto to analyse the technical condition of the hull of the Norne FPSO. It was essential to decide whether the Norne FPSO required a yard stay in 2018 in order to extend its technical life to 2030.
The studies have proven that the hull structure is solid and that the life can probably be stretched to 2036. The necessary alterations at Norne to extend its productive life can be made without bringing the FPSO ashore for an extensive period.
Currently, the focus is on the advancement of development work in order to maintain the good technical condition of the hull. An application for an extended technical life for Norne is expected to be effective by 2021.
Currently, Statoil carries a Zacks Rank #5 (Strong Sell). Better-ranked stocks include Enbridge Energy Management LLC (EEQ) and QEP Midstream Partners, LP (QEPM). Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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