Statoil slashes development costs for Trestakk discovery
STAVANGER, Norway -- Statoil has submitted a Plan for Development and Operation for the Trestakk discovery on the Halten Bank to Norway’s Minister for Petroleum and Energy, Tord Lien. Capital expenditures are estimated at approximately 5.5 billion NOK ($670 million).
The discovery, made in 1986, contains about 76 MMbbl of recoverable oil equivalent, mainly oil. The project will be tied back to the Åsgard A oil production vessel, with planned production startup anticipated in 2019.
“By rethinking our concept along with license partners and suppliers, we have arrived at a solution that costs almost 50% less than the original concept. At the same time, we have been able to increase the recoverable resources significantly,” said Torger Rød, head of project development, Statoil.
The first investment estimates were around 10 billion NOK, which was reduced to 7 billion NOK when the concept selection was made in January 2016. Additional improvements and concept adaptations this year further reduced the estimates to about 5.5 billion NOK.
The concept selection consists of a template structure and an attached satellite well, which will be tied back to Åsgard A. Three production wells and two gas injection wells will be drilled for a total of five wells.
“Volumes from Trestakk are an important contributor to ensure that operations on the Åsgard A production ship are extended toward 2030 and that more of the original volumes from the Åsgard field can be extracted,” said Siri Espedal Kindem, senior V.P. for operations North in Statoil.
