Statoil and its partners have committed to spend more than NOK5 billion ($643 million) in further development of the Snøhvit area in the Norwegian sector of the Barents Sea.
The investment is to provide further gas for the LNG plant at Melkøya close to Hammerfest.
They plan to develop the Askeladd field via three wells linked to two new subsea templates, with space for additional wells in the future, and new facilities linking the production to the existing Snøhvit field infrastructure.
Askeladd will supply 21 bcm of gas and 2 MMcm of condensate to Hammerfest LNG, with start-up scheduled for end-2020.
“The development will help maintain a plateau production rate at the Hammerfest LNG plant until 2023 and secure jobs in the region,” said Torger Rød, Statoil’s svp for project development. “The Snøhvit license contains enough gas to maintain production beyond 2050, and Hammerfest LNG will provide jobs for many years to come,” added Per Henry Gonsholt, acting production director at Hammerfest LNG.
So far Statoil has contracted Aker Solutions to provide the two subsea templates. More awards will follow over the next few months.