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The North Sea contains a considerable target for surfactant flooding. A dilute surfactant flooding concept which utilises a low (1%) concentration of active surfactant, applied during waterflooding, was developed in the laboratory and evaluated for fullscale application. The technical evaluation revealed an unacceptably high risk related to lack of detailed understanding of the process mechanisms operating in the reservoir. Economic studies showed that the method developed, if successful, would result in a technical cost per incremental barrel of, some $90 (at 15% discount ratel, and thus is not viable for North Sea applications in the foreseeable future.