Statoil said it encountered oil while drilling exploration well 6608/10-15 in the prospect, about five miles from its proven Norne field.
Statoil said it estimated the volume of the discovery at Svale North at between 6 million and 19 million barrels of recoverable oil.
Statoil said it's the second discovery of its kind in the Norwegian Sea in three weeks. It announced a discovery in the Smorbukk North prospect last month.
"The Svale Nord discovery confirms the prospectivity and Statoil's exploration success in the area," Hans Jakob Hegge, senior vice president for regional development, said in a statement. "The discovery could lead to a further extension of the Norne field production life [if it can be tied in.]"
The Norwegian government last month confirmed an oil discovery in the Norne field contained less than 6 million barrels of recoverable oil and an analysis will be made to assess its commercial prospects.
The government said average daily production of oil and associated products was more than 1.9 million barrels for July, a 15 percent increase from the previous month.