The Mikkel gas development operated by Statoil has been officially inaugurated after being brought on stream well below its original cost estimate.
Developed with subsea installations, this Norwegian Sea field is tied back to the Åsgard B gas production platform also operated by Statoil and began production on 1 October last year.
Its overall cost came to NOK 1.8 billion, reports Mikkel asset manager Torje Saur. The budget in the plan for development and operation (PDO) was more than 30 per cent higher.
“Since coming on stream, we’ve produced as planned and fully exploited capacity in our facilities,” says Mr Saur. “That means a daily output of 5.8 million cubic metres of gas.”
Recoverable reserves in the field are now put at 28 billion cubic metres of gas and 40 million barrels of condensate – 20 per cent higher than the PDO estimate.
The Mikkel wellstream is piped to the subsea installations on Åsgard’s Midgard reservoir before being transported to the B platform.
Following separation, the gas is piped through the Åsgard Transport trunkline to the processing complex at Kårstø north of Stavanger.
Norwegian fabricators and suppliers have accounted for 90 per cent of deliveries to the Mikkel development.