Statoil (OL:STL) ASA (NYSE:STO) , along with its partners, has submitted the Plan for Development and Operation (PDO) and the Field Development Plan (FDP) for the Utgard gas and condensate discovery in the North Sea. The aforesaid plans have been submitted to regulatory bodies in both Norway and the U.K.
Located 21 kilometers away from the Sleipner field, Utgard (formerly Alfa Sentral) was discovered in 1982 and is estimated to have recoverable reserves of 56.4 million barrels of oil equivalent. The capital expenditures are expected at about NOK 3.5 billion.
Utgard overlaps the U.K.-Norway median line. Notably, the bulk of the reserves is located on the Norwegian side.
The Utgard development will comprise two wells in a standard subsea concept with one drilling target on each side of the median line. As all the installations and infrastructure are located in the Norwegian sector, the well on the U.K. side will be drilled from the subsea template on the Norwegian continental shelf. The distance from the subsea template to the median line is 450 meters.
A new pipeline will be used to channel gas and condensate to the Sleipner field for processing and further transportation to the market. Given that the Utgard gas has a high CO2 content, it is expected benefit from carbon cleaning and storage at Sleipner. Reuse of existing infrastructure is vital for the development of the Utgard discovery.
The Utgard wells are expected to be commissioned by the end of 2019. The produce from the field is expected to reach around some 7,000 Sm3 per day of oil equivalent in the plateau phase.
Investors interested in the energy sector may also consider players like Sasol Ltd. (NYSE:SSL) , Enbridge, Inc. (NYSE:ENB) and Total SA (TO:TOT) .
TOTAL FINA SA (TOT): Free Stock Analysis Report
STATOIL ASA-ADR (STO): Free Stock Analysis Report
SASOL LTD -ADR (SSL): Free Stock Analysis Report
ENBRIDGE INC (ENB): Free Stock Analysis Report
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