Norwegian oil and gas contractor Statoil has announced that it has submitted a $420 million plan to develop and operate Utgard in the North Sea.
The company stated that along with its partners, it has submitted plans to UK as well as Norwegian authorities for extracting gas and condensate from the region. It is estimated that reserves in the oilfield will be about 56.4 million barrels.
Previously called Alfa Sentral, Utgard is located 13 miles from Sleipner field. It was discovered back in 1982 and is situated on the UK-Norway median line. However, most of the oil reserves are present on the Norwegian side of the median line.
Statoil Senior Vice President for Project Development Torger Rød said that the field has been considered for development previously. However, Statoil would now be developing it commercially, which is an indication of the advances and improvements that have occurred in the oil and gas sector in the last couple of decades.
Statoil hopes to develop two wells in region, with one on either side of the median line. However, the infrastructure as well as the necessary installations will be present on the Norwegian side. The Norwegian oil company stated that the well on the UK side of the median line would be drilled on the Norwegian Continental Shelf.
The gas will be transported through a pipeline to the Sleipner field, where it will be processed and then sent to the different markets. This gas contains a lot of carbon dioxide, and it will be carbon cleaned and stored in the storage facilities at Sleipner.
The oil and gas contractor emphasised the importance of reusing the existing infrastructure to develop the fields in Utgard to make the project commercially viable.
It is anticipated that the Utgard oil field will become operational by the end of 2019.