Volve to be developed

February 15, 2005, 09:40 CET

The plan for development and operation (PDO) of Statoil’s Volve discovery in the North Sea has been submitted to the Ministry of Petroleum and Energy today, 15 February.

Oil from this field is to be produced from the Mærsk Inspirer jack-up rig, chartered from Mærsk, with the Navion Saga tanker being used for storage.

The latter vessel will be chartered from Navion Offshore Loading, which is a subsidiary of Teekay Norway.

Associated gas from Volve will be piped to Statoil’s Sleipner A platform for final processing and export.

“We’ve been a prime mover during recent years in developing and operating small fields based on mobile installations,” observes Volve project manager Svein Løining.

“This will be the third discovery we’re bringing into production on the Norwegian continental shelf with a solution of that kind.”

Total development and operating costs for Volve are put at roughly NOK 7 billion, with investment accounting for just under NOK 2 billion of that sum.

The contracts with Mærsk and Teekay have an overall framework of NOK 3-4 billion, depending on how long production ultimately continues.

A contract is also due to be awarded to Stolt Offshore for installation of in-field and export pipelines and a loading buoy on the field.

Advanced Production and Loading (APL) will get the job of delivering the buoy, while NKT Flexibles is scheduled to deliver the oil flowlines and gas export line.

These contracts are all conditional on approval of the PDO by the authorities.

Three production, three water injection and two water production wells are due to be drilled from the jack-up.

Plans call for Volve to come on stream in the spring of 2007, with the field expected to produce for four-five years.

Recoverable reserves are put at 70 million barrels of oil and 1.5 billion cubic metres of gas, and plateau output should be 50,000 barrels per day.

Statoil has a 49.6 per cent share of Volve in production licence 046, where the other partners are ExxonMobil with 30.4 per cent, and Total and Hydro with 10 per cent each.