Statoil has made what it describes as a breakthrough oil discovery and one of the most important finds on the Norwegian Continental Shelf in the past 10 years.
Working with partners Eni Norway and Petoro, the semi-state petroleum group uncovered hundreds of millions of barrels of oil while drilling the Skrugard prospect in the Barents Sea.
This latest discovery lies some 100km north of the important Snøhvit gas field, which was brought onstream in 2009.
The well was drilled using the semi-submersible rig Polar Pioneer, and has proven a gas column of 33m over an oil column of 90m. Statoil already considers the oil to be “easily producible”, though has yet to disclose the API (density).
Several core samples have been taken in order to understand reservoir properties, though some data collection from the discovery well remains to be carried out.
Skrugard is already a development candidate. Estimated recoverable oil lies in the range of 150-250million barrels oil equivalent (boe). However, Statoil sees considerable upsides that could ultimately lead to 500million boe being recovered from the licence area.
“The Skrugard find is significant and a breakthrough for frontier exploration in the Barents Sea. This opens a new oil province that can provide additional resource growth,” said Tim Dodson, vice-president exploration.
However, he warned that a lot more work is required before Skrugard’s potential is accurately estimated.
Nonetheless, the outlook for considerable upside looks good.
Statoil has plans for more drilling in the area and possibly further appraisal of Skrugard itself.
The Skrugard prospect was ranked as Statoil’s first priority in the 20th NCS licensing round, which was awarded in April 2009.
The company now expects to be awarded acreage in the 21st round, with acreage in areas nearby Skrugard as a key target. News is expected shortly.
Statoil said drilling operations were conducted in a safe, efficient and environmentally responsible manner.
So far, more than 80 wells have been drilled in the southern Barents Sea, and Statoil has operated more than 60 of them.
However, the company’s Snohvit gas development is the only field centre established so far in the region, though Eni’s Goliat oil project is now at an advanced stage.
Dodson: “The Barents Sea is large and we cannot say that we have cracked the code for the entire area yet. But we have confirmed that our exploration model is correct. This (Skrugard) is an important step in understanding how the geology and the hydrocarbon systems in the Barents Sea work.
“If the volume estimates are confirmed, then this discovery could provide a basis for an independent development. Given that it takes between five to 10 years from discovery to production, we are planning for the future now.
“Our ambition is to put the Skrugard find into production as quickly as possible.”
Statoil operates licence 532 with a 50% share. Partners are Eni (30%) and state-owned Petoro (20%).
Skrugard facts:
o The well (7220/8-1) encountered hydrocarbons at some 1,250m below the sea floor. The water depth at the drilling location is 370m
o The distance from the nearest land is 200km to Ingoya in the Masoy municipality – Finnmark, and 210km to Bear Island, which was made famous in a novel by Alistair MacLean
o Drilling was carried out using Transocean’s Polar Pioneer rig, which was specially built for the Arctic
o The Skrugard prospect has proven oil in the Bear Island fault zone, which is located further north in the Barents Sea than the Hammerfest Basin, where the Snohvit and Goliat fields lie
o Skrugard is the third well drilled in the Barents Sea in 2010/2011. Both Statoil and Eni had previously drilled dry wells on the Lunde prospects