First oil to Finnmark

The terminal will be located in Veidnes outside Honningsvåg in Finnmark. (Ill. Statoil)

Statoil plans to bring oil from the Skrugard and Havis fields in the Barents Sea ashore by pipeline to Finnmark.


Statoil and its partners have chosen a development concept for the twin Skrugard and Havis discoveries in the Barents Sea. The concept includes a floating production unit with a pipeline to shore and a terminal for oil from the Skrugard field at Veidnes outside Honningsvåg in Finnmark. The field is scheduled to come on stream in 2018.

In 2011-2012 Statoil and its partners discovered Skrugard and Havis, which are two independent structures within the same licence and represent the Skrugard field development. 400-600 million barrels of recoverable oil have been proven in this area.

- The decision to bring Skrugard oil ashore at Veidnes is a key element of the further development of Norwegian oil and gas industry. This may spark off a new industrial era. This concept choice will facilitate further exploration and help make any future discoveries profitable,” says Øystein Michelsen, executive vice president for Development and Production Norway.

280-kilometre pipeline
The Skrugard and Havis assets will have a common infrastructure. Production from Skrugard and Havis will be tied in to a semi-submersible floating installation through a subsea production system located in about 380 metres of water. The production is estimated at almost 200,000 barrels of oil equivalent per day.

The oil will be transported through a 280-kilometre pipeline from Skrugard to Veidnes outside Honningsvåg. It will be piped directly to an oil storage facility and stored in two mountain caverns. The oil will be sent from there in a pipeline to the quay for transportation by tankers. Some 50-100 crude tankers per year are estimated to call at the terminal.

Northern Norway the country’s next big petroleum region
“This is part of the ambition of making Northern Norway the country’s next big petroleum region. We are pleased to have selected a good concept and hope that this may form the basis for a valuable partnership with local authorities and industry also in the future,” Michelsen says in a press release.

The terminal is expected to create 30 new jobs and thrice as many through spin-of effects, Finnmarken writes.

Skrugard is located in the Barents Sea, about 100 km north of Snøhvit, 150 km from Goliat and nearly 240 km from Melkøya. The water depth is 360-390 metres. The distance between Skrugard and Havis is 7 kilometers. The partners’ ambition is to select the concept in 2013, deliver a PDO in 2014 and start production in 2018. Partners in the project are Statoil operator (50%), ENI 30%, Petoro 20%.