Statoil to Develop Vilje South Extension in North Sea

Statoil ASA (STL), Norway’s largest oil and natural gas company, will invest 1.1 billion kroner ($188 million) in the Vilje South field as it seeks to increase domestic production.

The ‘fast-track’ development of Vilje South, in the central region of the North Sea, is an extension of the main Vilje field. It will involve a single well tied back to Marathon Petroleum Corp.’s Alvheim field 19 kilometers (12 miles) away, the Stavanger-based company said today in an e-mailed statement.

It’s the sixth such investment decision to be taken this year with one more expected, Halfdan Knudsen, chief of Statoil’s fast-track portfolio, said in the statement. Plans to speed up development of Snorre B and Mikkel South have been shelved, Statoil said.

Vilje South is estimated to hold 7.6 million barrels of oil equivalent with net oil production expected at about 5,000 barrels a day in 2014, the company said.

Aker Solutions ASA (AKSO) was awarded a 225 million-kroner contract to build the subsea system, which is expected to be completed in the second quarter of 2013, the company said in a separate statement.

Statoil holds a 29 percent stake in the license and is the operator. Marathon holds 47 percent and Total SA (FP) 24 percent, according to the Norwegian Petroleum Directorate’s website.

To contact the reporter on this story: Stephen Treloar at streloar1@bloomberg.net Meera Bhatia at mbhatia2@bloomberg.net

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net

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