A simple, smart concept and increased drilling efficiency have shaved some NOK 200 million off the capital expenditures of this already resilient development project after the investment decision.

The development helps maximise production from the Fram area, in addition to boosting Troll C production and activities.

Fram C East is a long production well drilled from the existing Fram subsea template. Production will be tied back to Troll C, an important North Sea hub.

Gas will be transported to Kollsnes via Troll A, whereas oil will be piped to Mongstad for further processing.

Originally estimated at some NOK 800 million capital expenditures have now been reduced to some NOK 600 million thanks to a simple, smart well concept and significantly increased drilling efficiency.

“Fram C East is a small development project, but a key element of our plans to capture maximum value in the Fram area,” says Lars Høier, vice president operations, Troll and Fram.

“We are pleased to see that our targeted efforts to cut costs and improve profitability on the Norwegian continental shelf (NCS) have benefitted this development project. Fram C East has seen profitability rise from good to even better, and will see a positive cash flow as early as in 2016,” Høier adds.

Statoil has a long-standing record of infrastructure development on the NCS, which is key to the profitability of small-size development projects.

Last week Statoil submitted the Plan for Development and Operation of Byrding (north of Fram) together with another partnership. Production from this field, too, is tied back to the Troll C platform.

“Our strong position and role in several partnerships in the Troll / Fram area give us flexibility and possibilities to generate high value by taking an overall approach to the area, maximising the use of the existing infrastructure. This represents good resource management, benefitting our partners, our owners, suppliers and society at large,” says Gunnar Nakken, senior vice president, Operations West.

Capital expenditures totalling some NOK 600 million, recoverable resources are estimated at 18.2 million barrels of oil and 1.6 billion sm3 of gas. Profitability is resilient with a low break-even.

Facts about Fram C East

- Partners: Statoil (45 %), ExxonMobil (25%), Engie (15%), Idemitsu (15%)
- Approved by the Ministry of Petroleum and Energy, Fram C East is exempt from the ordinary PDO process
- Fram is a subsea field tied back to Troll C
- Discovered in 2007 Fram C East is located in the very east of the Fram East deposit
- The discovery is planned to be produced through a production well drilled from the existing subsea template
- Production will go via the subsea template through an existing production pipeline for processing on the Troll C platform
- Fram C East was drilled by the Stena Don floater

About Statoil

Statoil ASA (OSE: STL, NYSE: STO) is an international energy company with operations in 36 countries. Building on 40 years of experience from oil and gas production on the Norwegian continental shelf, we are committed to accommodating the world's energy needs in a responsible manner, applying technology and creating innovative business solutions. We are headquartered in Stavanger, Norway, with approximately 23,000 employees worldwide, and are listed on the Oslo and New York stock exchanges.