June 15, 2007 / 10:17 AM / 11 years ago

Norway parliament approves Gjoa gas/oil plan

OSLO, June 15 (Reuters) - Norway’s parliament has approved a $4.4 billion plan for the development and operation for the Gjoa oil and gas field in the North Sea, operator Statoil STL.OL said on Friday.

Proven in 1989, Gjoa’s reserves are estimated at 82 million barrels of oil and 40 billion cubic metres of gas, the company said.

“The Gjoa field will be developed with a floating production platform with plans calling for it to come on stream in 2010,” Statoil ASA said in a statement.

“Realisation of Gjoa’s reserves will give Statoil significantly increased production and returns,” it said. “Total Gjoa investments are estimated at 27 billion Norwegian crowns ($4.44 billion) in 2006 money.”

Statoil is the development phase operator and has a 20 percent stake in Gjoa. Its partners are Gaz de France GAZ.PA, which will become operator in the production phase, Norway’s state-owned Petoro, Shell (RDSa.L) and RWE Dea (RWEG.DE).

The gas will be sent via the UK Flags pipeline to St. Fergus in Scotland. Oil will be piped to the Troll II line and further to the Statoil-operated Mongstad refinery north of Bergen on Norway’s west coast.

Norsk Hydro’s (NHY.OL) Vega and Vega South fields will be tied into Gjoa.

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