) along with its partners has formally handed over its plan for
the development and operation (PDO) of the Delta 2 field off
Norway to the authorities.
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This would be the eleventh fast-track development for Statoil and
is estimated to cost around NOK 7.4 billion ($1.3 billion). The
fast-track projects are an effort by the state-run operator to
expedite the development of time-critical resources utilizing
existing field infrastructure.
Delta 2 is estimated to have recoverable reserves of 77 million
barrels of oil equivalent, of which oil is 38%. The field will be
developed using two subsea templates tied back to the centre of
Oseberg field in the North Sea, enhancing the overall yield from
the veteran producer.
Located in a water depth of about 100 meters, the field is
anticipated to begin production by the end of 2014 with peak
production targeted at 18,000 barrels of oil equivalent per day.
The field time is expected to be almost two decades. The
investment decision for the Delta 2 project was made in Dec 2011.
The fast-track projects are likely to augment Statoil's equity
production. Towards the end of 2014, these projects are likely to
generate 100,000 barrels of oil equivalent daily (boe/d). The
execution time on fast-track projects has been reduced to half
when compared to ordinary projects. Many of the discoveries
currently being developed would not have been profitable in the
absence of a fast-track concept. This concept is appropriate for
making the development of limited discoveries profitable.
Statoil, the operator of Delta 2, holds 49.3%. The other partners
including state holding company Petoro AS,
) have a share of 33.6%, 14.7% and 2.4%, respectively.
Statoil carries a Zacks Rank #3 (Hold). However, Zacks Ranked #1
) appears more attractive and is expected to outperform over the
next few months.