Equinor Announces Start of Production at Statfjord Ost Project
Equinor has initiated production at the Statfjord Ost project, extending the life of mature fields and maximizing value creation. The project's profitability remains high, and production has started ahead of schedule.
Troy D. Hanson
August 25, 2023
Equinor has recently initiated production at the Statfjord Ost project in the North Sea. Through the installation of a new pipeline, the addition of five wells, and modifications made to the nearby Statfjord C platform, the project aims to boost production volumes at the Statfjord Ost field by 26 million barrels of oil equivalent.
By extending the life of mature fields and maximizing value creation from existing infrastructure on the Norwegian continental shelf, Equinor demonstrates the significance of this endeavor. Camilla Salthe, Equinor's senior vice president for field life extension, highlights the project's contribution to prolonging the life of Statfjord C until 2040. The profitability of the project remains high, with an approximate value of increased production totaling around 20 billion Norwegian kroner ($1.87 billion) at the current oil price.
Despite challenges such as inflation and a weakened Norwegian krone, the project is expected to stay within estimated cost. Moreover, the production start has exceeded expectations by commencing six months ahead of schedule.
Equinor partners with Petoro, Var Energi, Okea, Inpex Idemitsu, and Wintershall Dea in the Statfjord Ost license.