Statoil ASA STO, along with its partners, submitted the plan for development and operation (PDO) of the Oseberg Vestflanken 2 in the North Sea to the authorities. The development is expected to yield over 100 million barrels of oil equivalent.
Located about eight kilometers northwest of the Oseberg field centre, Oseberg Vestflanken 2 development includes the Alpha, Gamma and Kappa oil and gas structures. Statoil and its license partners will work on each of these.
The Oseberg Vestflanken development will comprise an unmanned wellhead platform with 10 well slots. The wells will be remote-controlled from the Oseberg field centre and two existing subsea wells will also be reused.
Throughout the project planning phase, Statoil concentrated on lowering investment costs. Since concept selection earlier this year, the company has been able to cut total investment costs by about NOK 1 billion. As the resource base gradually matured, it resulted in more volumes, which in turn made the project a reality.
Oseberg Vestflanken 2, which is a result of long-term license decisions and uniform area development, is vital for the future development of the Oseberg infrastructure.
A new pipeline would direct the well stream to Oseberg field centre. Production is expected to commence in the second quarter of 2018. The remaining reserves in the Oseberg area will be developed in three phases of which, Oseberg Vestflanken 2 is the first.
Statoil – the operator of Oseberg – holds 49.3%. Other partners include Petoro, Total SA TOT and ConocoPhillips COP, holding 33.6%, 14.7% and 2.4%, respectively.
Statoil carries a Zacks Rank #3 (Hold). A better-ranked player from the energy sector is ReneSola Ltd. SOL, which sports a Zacks Rank #1 (Strong Buy).
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