Statoil, Partners to Invest $10.2 Billion at Hansteen, Pipeline

Statoil ASA (STL), which operates about 80 percent of Norway’s oil and gas production, will invest 57 billion kroner ($10.2 billion) with its partners to develop the Aasta Hansteen gas field and build a Norwegian Sea pipeline.

The Stavanger-based company and partners, OMV AG (OMV) and ConocoPhillips (COP), will invest 32 billion kroner in the field development, Statoil said in a statement today. The company and an expanded list of partners will also spend 25 billion kroner on a new pipeline, the deepest ever link, from Aasta Hansteen to the Nyhamna gas processing plant.

The field “will be the first deep-water development in the Norwegian Sea,” said Oeystein Michelsen, executive vice president for development and production Norway, “This opens for the tie-in of existing and new discoveries. The development may generate substantial ripple effects in the north.”

Aasta Hansteen, which includes the Haklang and Snefrid South discoveries, holds recoverable volumes estimated at 47 billion standard cubic meters of gas. The field will be developed at a depth of 1,300 meters (4,250 feet) and operated by the world’s biggest Spar platform, which is supported by a single vertical cylinder, according to Statoil.

The company plans to start production in third quarter of 2017 and reach a plateau of about 130,000 barrels of oil equivalent a day.

The planned pipeline, called Polarled, will connect Aasta Hansteen to Royal Dutch Shell Plc.’s Nyhamna processing facility 480 kilometers away. Partners in the link, which will have a capacity of 70 million cubic meters per day, also include Total SA and GDF Suez SA.

Statoil in July awarded Technip SA a letter of intent for the construction of the Spar platform hull. The contract value was then estimated at 4 billion kroner.

To contact the reporter on this story: Mikael Holter in Oslo at mholter2@bloomberg.net

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net

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