Statoil ASA, Norway’s biggest oil and natural-gas producer, will raise research and development spending 27 percent to 2.8 billion kroner ($468 million) this year to help the company meet a 2020 target for output gains.
The investment will allow Statoil to cut the time taken to build wells by 30 percent and costs by 15 percent by 2020, the Stavanger, Norway-based company said in a statement. It will also improve so-called reservoir characterization or modeling, adding about 1.5 billion barrels of oil equivalent in reserves.
Statoil plans to expand production to 2.5 million barrels of oil equivalent a day in 2020, compared with 1.9 million in 2010. Its ambitions were bolstered with the announcement of a find yesterday that may hold 200 million to 300 million barrels at the Havis prospect in the Barents Sea, about 7 kilometers (4.4 miles) southwest of Skrugard, a find discovered in April.
The company will focus on increasing rates of discovery and recovery, lowering well construction costs and improving the capability of subsea compression, said Magareth Oevrum, head of Technology, Projects and Drilling, in an interview in Oslo. Subsea compression is used to maintain pressure and output.
“We will find the resources of the future at great oceanic depths, in Arctic areas where the conditions are extreme,” Oevrum said in the statement.