Investing NOK 20 Billion in New Projects on the Norwegian Continental Shelf
Monday 27 March 2017
New technology and project improvements trigger new investments on the Njord and Bauge fields in the Norwegian Sea. Statoil, on behalf of the partnerships in the licences, today submits the plans for the development projects to the Norwegian minister of petroleum and energy, Terje Søviknes.
“When we submitted the plan for development and operation for the Njord development 20 years ago we assumed that the field would be shut down in 2013. With new technology, project improvements and close cooperation with the partners and supply industry, we now see opportunities to create considerable value for another 20 years at Njord”, says Margareth Øvrum, Statoil’s executive vice president for Technology, Projects and Drilling.
It is a revised plan for development and operation of the Njord field and a plan for development and operation of the new Bauge field that were submitted to Norwegian authorities today.
Capital expenditures for both fields total NOK 19.8 billion (Njord NOK 15.7 billion, and Bauge NOK 4.1 billion).
“The Njord and Bauge development projects bring new opportunities for the supply industry. Both the Njord A platform and the Njord Bravo floating storage and offloading vessel (FSO) will be upgraded. In addition, we will build new subsea facilities, drill new wells and perform extensive marine operations,” says Øvrum.
Further development of the Njord area, including upgrading of the Njord installations and development of the Bauge field, is important to the industry in Mid-Norway and further development of the Norwegian continental shelf.
“Njord remaining on stream until 2040 is important for our specialist communities in Kristiansund and Stjørdal, as well as Mid-Norway supply industry. An upgraded field centre and new infrastructure at Njord will facilitate the development also of other fields in the area,” says Siri Espedal Kindem, Statoil’s senior vice president for operations North in Development and Production Norway.
The work performed on the Njord A platform at Kværner Stord will facilitate the tie-back of Bauge, as well as potential third-party tie-ins.