Norway’s Ministry of Petroleum and Energy has given Statoil the green light to allow the Sigrun discovery to remain in the ground. The company believes building it out will be unprofitable.
A letter from the Ministry dated 14 December 2011 Aftenbladet has obtained access to, shows Statoil applied for exemption from terms that were established in connection with considering Gudrun’s plan for development and operation (PDO).
The Gudrun oil and gas field in the middle part of the North Sea is Sigrun’s big sister.
One of the conditions of approval when Statoil delivered the PDO for this field in July 2010, was that the company should prepare an updated plan for how Sigrun’s resources were to be recovered.
The letter from the Ministry states that this condition has now been waived.
“Statoil justifies the application by stating a thorough survey has revealed that it is not profitable to extract resources contained in Sigrun,” reads the ministry’s letter to Statoil.
Production start in 2014
Construction of the Gudrun field platform is well underway, and production is set to start in 2014. Recoverable reserves in Gudrun and Sigrun are estimated to be about 71 million barrels of oil, about 1.5 million tonnes of NGL (Natural Gas Liquids) and about 9.6 billion Sm3 of dry gas. The Sigrun field would have contributed about 8.2 million barrels of oil and about 1.2 billion Sm3 of gas.
The plan was that Gudrun and Sigrun would be developed together, where the plan for Gudrun is a single processing platform with a steel jacket.
At Sigrun, a seabed template with a production well was to be installed, which would have linked to the platform on the Gudrun field by means of a pipeline.