Svale postponed

September 17, 2001, 15:45 CEST

The Norwegian Sea's Svale field contains less recoverable oil than previously estimated. The partners will therefore postpone submitting a plan for development and operation (PDO) to the authorities.

The test and analyses results from exploration well 6608/10-6 and appraisal well 6608/10-7 have caused operator Statoil to scale down Svale's estimated oil reserves.

Recoverable reserves in the field have been reduced from an estimated 80 million to 50 million barrels of oil.

This scaling-down means that the proposed development solution does not meet Statoil's requirements to return on capital. The partners in production licence 128 will therefore not submit a PDO in November as intended, according to Kjell Sirnes, project manager for Svale.

Plans call for a development of Svale as a satellite tied back to the production ship on the Statoil-operated Norne field. The partners are now considering possibilities for tying back other prospects in order to make the project more profitable.

The Svale structure was proven in May 2000.