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Norway Sanctions Svalin Oil Tieback

27 November 2012

Statoil has approval from Norway’s Ministry of Petroleum and Energy for its development plan for the Svalin field in the North Sea. This will be the first subsea tieback to the Grane complex.

Svalin is 6 km (3.7 mi) southwest of the Grane platform, in a water depth of 125 m (410 ft), with recoverable oil reserves estimated at 75 MMbbl. This is almost equally split between the Svalin C and Svalin M structures.

The wellstream from Svalin M will be produced via a well drilled from the Grane platform. Svalin C will be developed via a subsea facility tied connected to the platform by a 6-km production pipeline.

Oil will be commingled with production from Grane and sent through the existing pipeline to the onshore oil terminal at Sture.

Statoil discovered Svalin M in 2008 and Svalin C in 1992. Startup of the production from the two structures is scheduled respectively for end-2013 and summer 2014.

Grane’s production has been declining, but the extra volumes from the new project should keep the Grane facilities in service through 2030.