Statoil and its partners are considering developing the Skrugard discovery in the Barents Sea by means of a floating production unit with the additional capacity to process and transport from other prospects in the area.

A feasibility study has identified a technical and commercial solution for the Skrugard field in the Barents Sea. The solution involving a floating production unit will result in the rapid and cost-efficient development of the discovery.

The production unit will have separate oil storage and offshore loading capability with a production capacity of 95,000 barrels of oil per day. The feasibility study means that the field will be developed with 14 oil producers on the seabed and pressure support provided via injection wells for water and gas.

The discovery was made in April 2011, and volumes are estimated to be around 250 million barrels of recoverable oil equivalents, with a considerable upside potential.

However, there are several prospects in the near vicinity and Statoil will now look into the possibility of including possible discoveries in a total development solution.

'We are now entering a phase where we will set up the team that will continue working on Skrugard. We will improve our understanding of the resource basis, study several alternative development solutions and decide on the concept, as well as plan for operations with high health, safety and environmental standards,' says vice president for operations on the Skrugard development, Erik Strand Tellefsen.

'We are drawing upon our own and our partners' experience and the lessons learned on Goliat and on our fast-track developments. Skrugard will mainly be based on familiar technology, while making allowances for harsh weather regions. The project team will be located in Harstad, apart from the construction site section, which has been placed in Oslo.'

Tags: Statoil