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 the oil will be piped to Mongstad for further processing.

According to Statoil, the development will help to maximize production from the Fram area, in addition to boosting Troll C’s production and activities.

Capital expenditure for the project was initially estimated at some NOK 800 million ($97.5 million); however, this was reduced to about NOK 600 million due “to a simple, smart well concept and significantly increased drilling efficiency,” the company said.

“Fram C East is a small development project, but a key element of our plans to capture maximum value in the Fram area,” said Lars Høier, V.P., Operations, Troll and Fram. “We are pleased to see that our targeted efforts to cut costs and improve profitability on the Norwegian Continental Shelf have benefited 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.”

Last week, Statoil submitted the Plan for Development and Operation for the Byrding discovery, which lies to the north of Fram. Production from this field, too, will be 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, maximizing the use of the existing infrastructure. This represents good resource management, benefitting our partners, our owners, suppliers and society at large,” said Gunnar Nakken, senior V.P., Operations West.