Statoil lets subsea contract for Gjøa project

Dec. 6, 2006
Statoil ASA plans to buy subsea systems from FMC Technologies under a $210 million contract for its Gjøa oil and gas project off Norway.

Uchenna Izundu
International Editor

LONDON, Dec. 6 -- Statoil ASA plans to buy subsea systems from FMC Technologies under a $210 million contract for its Gjøa oil and gas project off Norway.

The final contract award depends on the Gjøa partners submitting plans for development and operation (PDO) and installation and operation (PIO), and official approval of these by the Norwegian authorities.

FMC Technologies will design and manufacture the subsea system and will supply 14 subsea trees, 5 template structures with manifolds, a topside control system, and workover systems. First deliveries are scheduled for July 2008.

Kjetel Rokseth Digre, project manager for the Gjøa development, said the deal "makes it feasible to commence production drilling as early as autumn 2008."

Gjøa gas will be delivered to the St. Fergus terminal in Scotland; oil will be sent to the Statoil-operated Mongstad terminal near Bergen via a tie-in to the Troll II pipeline. Production is scheduled to start in 2010.

Gjøa lies on Blocks 35/9 and 36/7 in 380 m of water, 130 km northwest of Bergen. Gjøa's reserves are pegged at 82 million bbl of oil and condensate, and 40 billion cu m of gas.

Licensees are Gaz de France 30%, Petoro 30%, Statoil 20%, Royal Dutch Shell PLC 12%, and RWE Dea AG 8%. GDF will take over as production operator when the field comes on stream.

Contact Uchenna Izundu at [email protected].