The approval will extend the lifetime of the Njord field, which closed production in 2016.

The partners are planning to invest NOK15.7bn ($1.8bn) for further development of the Njord field and NOK4.1bn ($484.4m) for the Bauge field development.

Statoil technology, projects and drilling executive vice-president Margareth Øvrum said: “When we submitted the plan for development and operation for the Njord development 20 years ago we assumed that the field would be shut down in 2013.

“With new technology, project improvements and close cooperation with the partners and supply industry, we now see opportunities to create considerable value for another 20 years at Njord.”

For the Njord field, Statoil will invest in reinforcement of the hull of the Njord A platform, upgrade the equipment on deck, drill new wells and upgrade the Njord B floating storage and offloading vessel (FSO).

Located about 15km northeast of Njord field, the Bauge field is being developed with a subsea solution, pipeline to Njord A and umbilical from the subsea Hyme field.

Gas produced from the field will be supplied to the receiving terminal at Kårstø in Rogaland through the Åsgard transport system.

Norwegian Petroleum Directorate assistant director for development and operation Kalmar Ildstad said: "We are interested in ensuring investments to extend field lifetimes. This will allow both recovery and value creation to increase, while also opening up opportunities for developing other discoveries in the area."

Statoil is the operator of the Njord field with 20% stake while other partners include Engie E&P Norge with 40% stake, DEA Norge 30%, Faroe Petroleum 7.5% and VNG Norge 2.5% interest.

Additionally, Statoil operates the Bauge field with 35% interest. Other partners include ENGIE E&P Norge with 20%, Point Resources 17.5%, DEA Norge 17.5%, Faroe Petroleum Norge 7.5%, and VNG Norge 2.5% stake.

Production from the both Njord and Bauge fields is scheduled to commence in the fourth quarter of 2020.

Image: Illustration of the Bauge field development plan. Photo: courtesy of Statoil.