Statoil reported on August 24, 2016, that the company started production from the subsea Fram C East satellite offshore Norway, which will help boost the nearby Troll C’s production and activities.
The Norwegian giant was able to reduce the cost of Fram C East by US$24 million (NOK 200 million), from its original estimate of $97 million (NOK 800 million), representing a 24% reduction. The reduction was from «a simple, smart concept and increased drilling efficiency,» the company said.
Fram C East development helps to maximize production from the Fram area, in addition to boosting Troll C production and activities, Statoil confirmed.
Recoverable resources at the nearly $73 million (NOK 600 million) project are estimated at 18.2 MMbbl and 1.6 Bcm gas.
Profitability is resilient with a low break-even, Statoil said.
Fram C East is a long production well that is being drilled with the Stena Don semisubmersible, from the existing Fram subsea template. Production will be tied back to Troll C. Gas will be transported to Kollsnes via Troll A, whereas oil will be piped to Mongstad for further processing.
The Fram fields are some 20km north of the Troll field in Block 35/11 in production license 090, at about 350m water depth.
«We are pleased to see that our targeted efforts to cut costs and improve profitability on the Norwegian continental shelf (NCS) have benefitted this development project,» Lars Høier, vice president operations, Troll and Fram said. «Fram C East has seen profitability rise from good to even better, and will see a positive cash flow as early as in 2016.»
Last week, Statoil submitted the plan for development and operation of Byrding (north of Fram) to the Norwegian Petroleum Directorate. Production from Byrding is also tied back to the Troll C platform. Statoil is estimating its volume of recoverable resources to be about 11 MMboe, and at its peak period in 2017/2018, Byrding is estimated to produce nearly 8000 boe/d.