A consortium led by Equinor ASA has received approval from authorities to implement new facilities linked to the gas lift phase of the Statfjord Ost field in the North Sea, as announced by the Norwegian Petroleum Directorate (NPD) on Monday.

The NPD stated that the "expected start-up will be soon." Due to the significant changes introduced by the gas lift project to the field development plan, it underwent processing and approval by the authorities.

The ongoing development of Statfjord Ost, which began production in 1994, involves establishing a new pipeline from Statfjord C, part of the main Statfjord field, to existing subsea templates. The NPD noted that two production wells have also been drilled from Statfjord C.

Equinor, operating with a 43.25 percent stake in Statfjord Ost, anticipates that the gas lift project will enhance recoverable resources by 109 million cubic feet of oil and 28 billion cubic feet of gas.

The NPD acknowledged the gas lift project's significance in improving recovery and value creation from the Statfjord Ost field. Inger Ubbe, NPD's acting assistant director for license management, stated that the project contributes to good resource management and extends the field's lifetime towards 2040.

Investments in the gas lift project amount to approximately $349.2 million (NOK 3.7 billion), according to the NPD.

Statfjord Ost is part of the broader Statfjord area, which includes the Barnacle, Statfjord Nord, and Sygna fields. Equinor, predominantly state-owned, operates all the Statfjord fields. The other developers for Statfjord Ost are Petoro AS (30 percent interest), Var Energi ASA (20.55 percent), INPEX Idemitsu Norge AS (4.8 percent), and Wintershall Dea Norge AS (1.4 percent).

Resource recovery in Statfjord Ost currently employs pressure depletion due to the depressurization of the main Statfjord field. An NPD factsheet indicated that extending the lifetime of the Statfjord C facility could lead to additional wells and projects for Statfjord Ost.

Statfjord Ost produces oil from Middle Jurassic sandstone in the Brent Group. The reservoir, situated at a depth of 2,400 meters (7,874 feet), boasts good quality.

The extracted well stream is transported through two pipelines to the Statfjord C facility for processing, storage, and export. Statfjord Ost, Statfjord Nord, and Sygna share a process module on Statfjord C. Oil is loaded onto tankers, while gas is exported through Tampen Link and the Far North Liquids and Gas System pipeline to the UK.

Equinor divested 28 percent of its Statfjord area stake to Okea ASA for $20.8 million (NOK 220 million), along with a three-year contingent payment. This move aimed to optimize Equinor's oil and gas portfolio, welcoming an industrial player with late-life expertise into the Statfjord partnership, according to Camilla Salthe, senior vice-president for field life extension.

Equinor's announcement highlighted that since 1979, Statfjord has produced over 5.1 billion barrels of oil equivalent, generating $158.1 million (NOK 1.675 billion) in gross revenues.

Camilla Salthe emphasized Equinor's ongoing high expectations for Statfjord, with the goal of extending the field's lifetime towards 2040 and reducing emissions by 50 percent by 2030 through the development of new working approaches.