Dong E&P orders Oselvar subsea production system

June 10, 2009
Dong E&P Norge AS awarded Aker Solutions a 350 million kroner engineering, procurement, and construction contract for a subsea production system for developing Oselvar field on Blocks 1/3 and 1/2 in the North Sea.

Guntis Moritis
OGJ Production Editor

HOUSTON, June 10 -- Dong E&P Norge AS awarded Aker Solutions a 350 million kroner engineering, procurement, and construction contract for a subsea production system for developing Oselvar field on Blocks 1/3 and 1/2 in the North Sea.

The production system includes a four-slot template with manifold, three subsea trees, control systems, subsea wellheads. and 28 km of steel-tube umbilicals.

Oselvar, discovered in 1991, is in the southwest part of the North Sea in about 70 m of water. Appraisal wells were drilled in 1995, 2007, and 2008.

The Norwegian Petroleum Directorate indicates that the field may recover 4.4 million cu m of oil and 4.8 billion cu m of gas. It says the field contains oil with a gradual transition to gas via a condensate phase. Depth of the reservoir is at 2,900-3,250 m.

Dong E&P plans to produce Oselvar with three subsea completed horizontal wells.

The subsea production system will tie back to the BP PLC-operated Ula platform on Block 7/12, about 23 km from Oselvar. Part of the gas from Oselvar will be used for injection in a water-alternating-gas scheme for enhancing oil recover from Ula, and oil and the remaining gas will go via Ula to Ekofisk for further transport.

The contract is subject to the Norwegian government approval of the March development and operation plan for Oselvar.

Aker will manage the contract from its Oslo headquarters and manufacture most subsea equipment in its Norwegian facilities at Tranby, Moss, and Egersund. Aker Solutions is a subsidiary of Aker Subsea AS.

Aker expects to make final equipment deliveries in first quarter 2011; planned start of production is expected in fourth quarter 2011.

Operator Dong E&P holds a 40% interest in Production License 274 on Block 1/3. Partners in the license are Bayerngas Produksjon Norge 30%, Wintershall Norge ASA 15%, and Norwegian Energy Co. ASA 15%.

Dong E&P has an agreement to acquire Wintershall's interest in Oselvar.

Contact Guntis Moritis at [email protected].