Statoil and its partners have decided to develop the Rutil discovery in the Gullfaks Rimfaks valley in the North Sea.
The company said it could provide close to 80 million barrels of oil equivalent and extend the lifetime of the Gulfaks A platform.
Investment costs involved with the project are estimate to be around $610million.
The Gullfaks Rimfaks valley development will consist of a standard subsea template with two simple gas production wells, and possibilities of connecting two more wells.
The well stream will be connected to the existing pipeline to the Gullfaks A platform.
A PDO (Plan for development and Operation) has been submitted by the company’s head of field development, Ivar Aasheim, to Norway’s minister of petroleum and energy.
He said: “We are pleased about the investment decision we have made that will extend the period of profitable production on the Gullfaks A platform.
“By using existing infrastructure and standardized solutions we are able to create great value for our owners,
“Statoil is currently implementing a major improvement effort to reduce costs and increase profitability to secure longterm activity and value creation on the NCS.
“The Gullfaks Rimfaks valley is a good example of this work.”
Statoil said gas and condensate will be transported in an existing pipeline for processing at Karsto, north of Stavanger.
The processed gas is transported to markets on the European continent.
Production is scheduled for the first quarter of 2017.
The licence partners ate Statoil with 51% of the share, Petoro with 30% and OMV with 19%.