Norwegian energy giant Statoil ASA ( STO - Analyst Report ) presented its plan for development and operation of the Svalin oil and gas field to the local authorities. The total investment is expected to be NOK 4.5 billion ($753 million).

Located in Production License 169 in Block 25/11 in the North Sea, at a water depth of 125 meters, Svalin is the eighth fast-track development in Statoil’s portfolio. This field will be tied to the Grane platform to accelerate the generally prolonged process of commissioning.

The two structures in the field – Svalin C and Svalin M are estimated to hold a total recoverable reserve of about 75 million barrels of oil equivalent. Statoil targets daily output of 100,000 barrels of oil equivalent by 2014.

Found in 2008, the produce from Svalin M will be churned out by a well drilled from the existing Grane platform. It is expected to be commissioned by the end of 2013.

Discovered in 1992, Svalin C will produce using the subsea equipment with a four mile long flowline attached to the Grane platform. The structure is due to come online in the summer of 2014.

The gas compression facility at the Grane platform has been partially altered to manage the current yield from the Svalin field. The output from the Svalin development along with Grane fields yield will be carried via the existing pipeline for the purpose of storing and delivery from the oil terminal at Sture.

With yield expected till 2030, Svalin will support the diminishing oil and gas throughput at Grane by utilizing the platform’s available processing capacity.

Statoil has chosen Aker Solutions for the subsea production system and the flowline job, while Subsea 7 has been contracted for the subsea construction, umbilicals, risers and flowlines deal. However, these awards are yet to receive government’s consent.

Statoil, the operator of the field, holds an interest of 57%. The other partners – Norwegian state owned firm Petoro and ExxonMobil Corporation ( XOM - Analyst Report ) – hold 30% and 13% interests, respectively.

Statoil holds a Zacks #3 Rank, which is equivalent to a Hold rating for a period of one to three months. Longer term, we maintain our Neutral recommendation on the stock.