Statoil in Veslefrikk 'Extension'

Tuesday 12 September 2017

Statoil and its licence partners have decided to extend the lifetime of the Veslefrikk oilfield off Norway by a further seven years, compared with a previously mooted extension of two years, according to the country’s major offshore union.

An Industri Energi working group that has been pushing for the extension has now been informed by the state-controlled operator that the North Sea field will continue producing until at least 2025, with a yearly review of its profitability to be conducted thereafter, the union said in a statement.

It added Statoil’s partners in production licence 052 that hosts Veslefrikk - Repsol, Dea, Wintershall and state holding company Petoro - have also approved the lifetime extension.

The union said this is likely to entail investments of around Nkr1 billion ($127 million) to upgrade field facilities, while also maintaining around 200 jobs.

The field is produced using the Veslefrikk A wellhead platform and Veslefrikk B processing and accommodation facility.

Statoil had previously been looking to extend the lifetime of the field, brought on stream in 1989 and due to be shut down next year, by two years to 2020 following an evaluation of the field’s commercial potential.