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The Oseberg Field Center. Image courtesy of Harald Pettersen/Statoil.

Norway’s Statoil started up production Monday at the Oseberg Delta 2 field in the Norwegian North Sea.

The field’s recoverable reserves are estimated at 77 million barrels of oil equivalent.

Oseberg Delta 2 is tied back to the Oseberg Field Center and has been developed using two subsea templates with an eight well capacity.

The initial phase of the field’s development plan calls for three oil producer wells and two gas injector wells that are expected to yield a “substantially greater recovery rate,” Statoil’s vice president for operations on Oseberg East Terje Gunnar Hauge said.

The start-up of the first well was on schedule and took place 38 months after the discovery became part of the company’s fast-track portfolio.

The field cost about $920 million to develop, well below initial  investment cost estimates when the project was sanctioned.

“Delta 2 is an important element in extending the lifetime of Oseberg. It provides a good example of how we can make lesser discoveries profitable by using existing infrastructure while it is still available,” vice president for fast-track development projects in Development & Production Norway Arild Dybvig said.

Oseberg Delta 2 marks the further development of the Delta terrace where oil from two wells on an existing template has been produced since 2008.

“There are also some good opportunities for the further development of the area and an exploration well has already been planned in the southern part of the Delta terrace,” Hauge said.