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Mikkel concept in May

March 6, 2000, 08:00 CET

The partners in Statoil's Mikkel field aim to have selected a development solution for this Norwegian Sea gas discovery during May.

One concept under consideration involves the use of subsea production installations, with wellstream transfer to Statoil's Åsgard B floater via Midgard.

That could make it possible to recover almost 19 billion cubic metres of gas at an investment of NOK 1.7 billion.

The partners are considering the use of a subsea wellstream compressor if this option is selected, reports Mikkel project manager Kjetil Ohm.

While allowing recovery to be increased from 19 to 29 billion cubic metres, such a device would add NOK 750 million to the development bill.

The other option is to pipe the gas to Shell's Draugen field, permitting about 29 billion cubic metres to be recovered at a cost of NOK 2.8-3 billion.

In both cases, the gas would be sent on through the Åsgard Transport trunkline to Statoil's Kårstø treatment plant north of Stavanger for processing before being piped to continental Europe.

"The project team's most important job now is to make progress in commercial talks with the Åsgard and Draugen licences over receiving the Mikkel wellstream," Mr Ohm explains.

A decision on further investment is also due to be taken by the licensees in May. The plan for development and operation can be submitted to the authorities in September at the earliest.

Depending on the solution chosen, production could begin in 2002-2003.

Mikkel spans production licences 092 and 121. The other licensees are Exxon-Mobil and Norsk Hydro.