Statoil to spend $600 mln on small oil development

OSLO, March 20 Wed Mar 20, 2013 7:47am EDT

OSLO, March 20 (Reuters) - Norwegian energy firm Statoil has agreed to spend 3.5 billion crowns ($600 million) to tie its small Smoerbukk oil field into its Aasgard development, hoping to recover 16.5 million barrels of oil equivalent, it said on Wednesday.

Production from the Smoerbukk extension in the Norwegian Sea is expected to start in third quarter of 2015, the firm said in a statement.

"The recovered gas will be reinjected in the reservoir in order to maintain the reservoir pressure as oil is drained out," it said.

Statoil is Aasgard's operator with a 34.6 percent stake while other partners include state holding firm Petoro (35.7 percent), Eni (14.8 percent), Total (7.7 percent) and ExxonMobil (7.24 percent).