StatoilHydro sees oil in North Sea fields

OSLO, Norway, July 15 (UPI) -- StatoilHydro plans slight modifications to develop oil reserves at fields in the North Sea previously seen as gas and condensate structures, the company said.

The Norwegian energy giant announced it planned "a few simple modifications" to recover 7 million barrels of oil and about 35 billion cubic feet of associated gas from its Vega South project.

StatoilHydro said it would modify existing wells at the North Sea field at a cost of about $54 million.

"This only calls for simple solutions and limited investment, while giving us a big gain," said project manager Finn Langgard.

The Vega project covers two discoveries in the North Sea. Plans call for implementation of the modifications by the first quarter of 2010.

Original plans by StatoilHydro called for the North Sea finds to be developed as gas and light-oil fields, but the modifications will allow production of a thin layer of light crude, the company said.