London — Norway's state-controlled Equinor got the go-ahead from the country's upstream regulator Wednesday to start production from the Utgard gas and condensate field on the Norway-UK border line in the North Sea, helping boost output of the Gudrun oil blend.
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The Norwegian Petroleum Directorate said in a statement that Equinor would start production during September, noting that output would come from two wells linked to the nearby Sleipner processing facilities.
Condensate from Sleipner used to be marketed in its own right, but is now sold as part of the Gudrun oil blend,following the start of production from Gudrun in 2014.
The liquids are loaded at the Karsto terminal near Stavanger.
Utgard's recoverable resources are estimated at 56 million barrels of oil equivalent, according to Equinor.
The majority of the field, around 62%, and all the production facilities, lie in Norwegian waters.
Oil production from the Gudrun cluster, including Sleipner, amounted to around 42,000 b/d last year.
The Gudrun oil blend is ultra-light, with an API gravity of 50.7.
The NPD put the cost of the Utgard project at NOK2.7 billion ($300 million).
The Utgard licenses are mainly owned by Equinor, with Poland's Lotos and Kuwait's Kufpec holding small portionsof the Norwegian acreage. Equinor also operates the Gudrun and Sleipner fields.
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