Statoil To Invest $1.5 Bln In Stampede Development In U.S. Gulf Of Mexico

(RTTNews) - Norwegian energy firm Statoil ASA (STO) said it decided to invest $1.5 billion in the Stampede development in the U.S. Gulf of Mexico, which is expected to begin production in 2018. Statoil owns 25 percent of Stampede, which is operated by Hess.

Stampede, a new project named from unitizing the former discoveries of Knotty Head and Pony, is located about 350 kilometers from New Orleans, Louisiana at a water depth of more than 1,000 meters. The reservoir depth is 9,100 meters. Stampede consists of Green Canyon Blocks 468, 511 and 512.

Statoil said it estimates the reservoir contains approximately 350 million barrels of recoverable oil. Stampede's development plan calls for six subsea production wells and four water injection wells from two subsea drill centers tied back to a tension leg platform. Gross topsides processing capacity for the project is approximately 80,000 barrels of oil per day and 100,000 barrels of water injection capacity per day.

Statoil's co-owners in Stampede include Union Oil Company of California, a subsidiary of Chevron (25 percent), Hess (25 percent) and Nexen (25 percent). The total Stampede development is expected to cost $6 billion.