Statoil completes Polarled under budget

Norway

OSLO, September 29, 2015 – Norway state-owned oil corporation Statoil is finishing its 482-kilometre Polarled pipeline project about $423.18 million under budget, the company announced in a Monday press release.

“We are delivering Polarled under budget. The original investment budget for the pipeline project was NOK 11.1 billion ($1.3 bln). We now expect an investment level of around NOK 7.5 billion. ($883 mln),” Statoil head of projects Torger Rod said in the press release.

The Polarled pipeline will bring oil and gas from the offshore Aasta Hansteen field to Norway’s shore. Polarled is the deepest laid pipeline on the Norwegian continental shelf at 1,260 metres, and Norway’s first piece of infrastructure to cross the Arctic Circle. The pipeline’s maximum capacity will be around 70 mcm (2.47 bcf) of natural gas per day. Statoil began building the pipeline in March.

“With this pipeline, we can open up for gas exports to Europe from a completely new area, and with the infrastructure in place, it will also be more attractive to explore the area,” Rod said in the press release.

Illustration courtesy of Statoil.

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