Norwegian energy giant
) presented its plan for development and operation of the Svalin
oil and gas field to the local authorities. The total investment is
expected to be NOK 4.5 billion ($753 million).
Located in Production License 169 in Block 25/11 in the North
Sea, at a water depth of 125 meters, Svalin is the eighth
fast-track development in Statoil's portfolio. This field will be
tied to the Grane platform to accelerate the generally prolonged
process of commissioning.
The two structures in the field - Svalin C and Svalin M are
estimated to hold a total recoverable reserve of about 75 million
barrels of oil equivalent. Statoil targets daily output of 100,000
barrels of oil equivalent by 2014.
Found in 2008, the produce from Svalin M will be churned out by
a well drilled from the existing Grane platform. It is expected to
be commissioned by the end of 2013.
Discovered in 1992, Svalin C will produce using the subsea
equipment with a four mile long flowline attached to the Grane
platform. The structure is due to come online in the summer of
The gas compression facility at the Grane platform has been
partially altered to manage the current yield from the Svalin
field. The output from the Svalin development along with Grane
fields yield will be carried via the existing pipeline for the
purpose of storing and delivery from the oil terminal at Sture.
With yield expected till 2030, Svalin will support the
diminishing oil and gas throughput at Grane by utilizing the
platform's available processing capacity.
Statoil has chosen Aker Solutions for the subsea production
system and the flowline job, while Subsea 7 has been contracted for
the subsea construction, umbilicals, risers and flowlines deal.
However, these awards are yet to receive government's consent.
Statoil, the operator of the field, holds an interest of 57%.
The other partners - Norwegian state owned firm Petoro and
) - hold 30% and 13% interests, respectively.
Statoil holds a Zacks #3 Rank, which is equivalent to a Hold
rating for a period of one to three months. Longer term, we
maintain our Neutral recommendation on the stock.
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