Statoil begins arctic drilling campaign

Statoil begins arctic drilling campaign

Norway’s Statoil ASA (NYSE:STO) has started drilling a new injection well for CO2 gas on the Snøhvit field off the cost of Hammerfest, prior to starting work on a production well for replenishment of gas for Hammerfest LNG.

When the new CO2 injector is installed, the Songa Enabler (mid-water semi sub) will move on to drill the first new production well at Snøhvit since the field came on stream in 2007.

The drilling campaign is expected to last until the end of December.

Snøhvit is the only LNG project in the world capturing and stockpiling CO2 separated from the well stream in a dedicated formation offshore.

More than four million tonnes of CO2 from Snøhvit have been stored so far. The stored CO2 is being monitored in order to ensure that it does not mix with the main producing reservoir.

Geir Owren, asset owner representative for the Snøhvit project said: “Hammerfest LNG needed replenishment of gas in order to maintain the high production and capacity utilisation at the plant, while ensuring sustainable CO2 storage. This project is therefore important to Statoil.”

An extensive marine campaign was performed in the summer of 2015. Pipelines and a project template were installed and tied into the existing subsea facility on the Snøhvit field.

The new subsea facility was constructed and installed within the budged of US$295 million.

Hammerfest LNG’s next big development is the Askeladd field, part of the plan for development and operation of the Snøhvit licence.

According to Statoil, it is expected to come on stream in 2020/2021 and “will help ensure full utilisation of the capacity at Hammerfest LNG.”

@RGNOnline