Statoil ASA STO announced that its Troll field has completed two decades of production. The field has yielded a remarkable 1.56 billion barrels and generated an income of NOK 460 billion over the period.
Production from Troll was a daunting task but unwavering determination and innovation in reservoir technology, drilling, well and seabed technology as well as professional and systematic operations made it possible. Troll has been Norway’s biggest oil producer since the last three years.
Troll was awarded to Statoil as part of the fourth licensing round in 1979. Troll started production after four months of exploration drilling by Borgny Dolphin from Jul 17, 1979. While planning the field, the greatest challenge faced by the company was the development of a suitable technology to extract the thin oil zones without the wells emitting excessive gas. The technology used in Troll was a very challenging one and has been revolutionary in terms of drilling and well technology.
Although a thin oil-bearing layer extends over the entire field, only two provinces in Troll west are accessible. 15 seabed frames with a total of 121 well slots connected to the floating production platforms Troll B and Troll C are used to produce oil.
The wells at the Troll are all horizontal, which have to be drilled in two stages. The first stage is to drill down to the reservoir that lies 1,600 meters below the seabed. Thereafter, it is horizontally drilled further to about 5,500 meters into the reservoir. The majority of wells – referred to as branch wells – have two or three horizontal sections that meet at a crossroad in the reservoir.
The recovery rate for oil at the field is 40% at present, but is expected to touch 52%. A total investment of around NOK 100 billion has so far been invested into the field.
Statoil carries a Zacks Rank #5 (Strong Sell). Some better-ranked stocks from the same space are Alon USA Partners, LP ALDW, Braskem S.A. BAK and ReneSola Ltd SOL. Both these stocks sport a Zacks Rank #1 (Strong Buy).
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