Norwegian oil giant Statoil has dropped its previous platform solution plans for the Snorre 2040 development, in the Norwegian North Sea, deciding in favor of a subsea solution as a possible development concept.
According to its statement, Statoil and its partners have been working on the Snorre 2040 project over time to find a development solution that both realises the resource potential and has a resilient economy.
The concept focused on so far has been to build a new platform, but this solution has proved financially demanding, the Norwegian company explained.
Statoil and its partners have therefore simultaneously pursued the development of a subsea solution as an alternative concept. Statoil stated that, through the work on the subsea solution, the level of costs has been significantly reduced at the same time as a concept that realises the resource potential has been found. Cost reductions are at the same level as the company communicated on its Capital Markets Update two weeks ago for its portfolio of non-sanctioned projects, in the range of 30-40%.
The subsea concept allows the profitable resources to be produced and the full economic potential to be utilized, Statoil noted. The partners in the Snorre Unit have therefore, in close dialogue with the authorities, decided to stop the work on a platform solution for Snorre 2040.
The concept includes construction of six subsea templates with a total of 24 well slots.
The company concluded with information that the decision to pursue the project towards final investment decision was planned to be taken within the end of 2016, and possibly investment decision within the end of 2017.