Statoil's Offshore Norway Project to give 248 mln boe

 

Highlights:

 

* Submits plan to Norway's oil ministry on how to to extend the lifetime of the Njord oil and gas field in the Norwegian Sea

 

* Also submits plan for development of the nearby Bauge oil and gas field

 

* Statoil (STO) says the combined capital expenditures for the fields total NOK 19.8 billion ($2.35 billion) (Njord NOK 15.7 billion, and Bauge NOK 4.1 billion)

 

* Production startup seen in late 2020 for both projects

 

* Statoil says the remaining resources on the Njord and Hyme fields (Njord is the host for Hyme) total 175 million barrels of oil equivalent

 

* Statoil says will produce at Njord for another 20 years

 

* Statoil says Bauge resources, which will be phased in to the Njord A platform, are estimated at 73 million barrels of oil equivalent compared to a previous estimate of 63 million

 

* Bauge development will be the first user of the Cap-X technology, which is a next-generation subsea production system

 

* Statoil's senior vice president for operations, Siri Espedal Kindem, says Njord and Bauge projects are profitable at current oil price; declines to reveal break-even price level but says current Statoil portfolio is profitable with an oil price in the $30s per barrel

 

* Staoil says the Njord and Bauge development projects bring new opportunities for the supply industry, important to the industry in central Norway

 

* Statoil says 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

 

* Norway's Minister of Oil and Energy Terje Soeviknes expects 90-95 percent of subcontractors' deliveries to the Njord project will be made by Norwegian suppliers

 

* Njord extension and Bauge development plans were the first two PDOs to be submitted to Norway's oil ministry in 2017

 

* Statoil's project manager Torger Roed says "we are working hard to make more decisions on new projects. Two of them are Johan Castberg and the Snorre expansion. There is still work to do on those projects but we hope to make a decision in 2017."

 

* Soeviknes says he expects in total up to 10 plans offshore Norway to be submitted in 2017

 

* Ownership at Njord after approval of the plan from the oil ministry (pending formal approval of recently announced changes): Statoil (operator) 20 pct, Engie E&P Norge AS 20 pct, DEA Norge AS 50 pct, Faroe Petroleum 7.5 pct and VNG Norge AS 2.5 pct

 

* Ownership at Bauge after approval of the plan from the oil ministry (pending formal approval of recently announced changes): Statoil (operator) 35 pct, Engie E&P Norge AS 10 pct, Point Resources AS 17.5 pct, DEA Norge AS 27.5 pct, Faroe Petroleum Norge AS 7.5 pct, VNG Norge AS 2.5 pct