Page 117: of Offshore Engineer Magazine (Aug/Sep 2014)

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North Sea

An artist’s impression of Statoil’s Johan

Sverdrup concept.

Image from Statoil.

Norwegian Sea. VNG’s recent oil discov- The resource increase has been helped Norway’s maintained production of an increased oil price. Projects also ery Pil in the Njord/Draugen area demon- by a focus on research and development rates will also be aided by new major become increasingly vulnerable to a drop strates that there is yet more to fnd.” and adopting new technologies, Sølvberg felds such as Johan Sverdrup and Johan in oil price. If this trend continues, real-

In the Barents Sea, only 2% of says. Castberg, as well as further new discov- ization of future projects is increasingly the expected resources are sold and Gas and water injection has also been eries. Beginning from 2025, Norway’s threatened by too low proft margins.” delivered. more effcient than anticipated and undiscovered resources will need to be Companies are trying to implement “The center of gravity for undiscovered continuous improvements in reservoir tapped to maintain the country’s produc- stronger capital discipline. But the NPD resources has gradually moved north. understanding has led to drilling more tion levels, Sølvberg told UTC. is concerned that if capital discipline

It is here, in the Barents Sea, that the wells than originally planned as well. is too strong, it could result in short-

The cost challenge potential is greatest—and it is also here The trend is likely to continue, with termism and pricing of risk could become the uncertainty is greatest,” she said. many felds in production or under To achieve this, there are challenges, too conservative.

development today expected to provide including overall costs, as highlighted A specifc cost challenge for subsea

Maintaining production about 50% of the predicted production by Statoil’s Anders Opedal (see p. 108). oil felds is that they produce on average

Field life on the NCS has proven to be in 2030. But this will require continued “For a producing feld, today’s unit cost about 50/50 water and oil, making water much longer than originally estimated, efforts to extend feld life and fnd ways is nearly three times the cost [that it was] production an increasing challenge for with the total resource estimate having to increase recovery, Sølvberg says, add- 10 years ago,” Sølvberg says. “As an over- future recovery, as subsea felds move increased by 70%, compared to feld ing that there are about 165 projects cur- all trend, we see that unit costs increase into decline. “Cost effcient technolo- plan for development and operation rently being planned to improve recovery in line with the oil price. The cost gies for removing water or in the wells (PDO) estimates. from producing felds. increase eats up the proftability effect can have a big potential to obtain good oedigital.com August 2014 | OE 119 000_OE0814_geofocus5_NPD.indd 119 7/23/14 1:21 AM