Uchenna Izundu
International Editor
LONDON, Feb. 1 -- Aker Kvaerner will modify the topsides of the Norne floating production, storage, and offloading unit under a $62.3 million contract so that additional fields can be tied back to Statoil's Alve gas-condensate field in the Norwegian Sea (OGJ, Jan. 22, 2007, Newsletter).
Design and procurement work has started, subject to a letter of intent received Jan. 5, and prefabrication of steel and piping will start in August. The engineering, procurement, construction, and installation contract will be completed in March 2009.
Alve gas field will be phased in with existing infrastructure on the Statoil-operated Norne field. Alve will produce 4 million cu m/day of gas when it begins production in December 2008.
During the first quarter, Statoil plans to award Alve contracts for subsea production equipment, flexible risers, cables for pipeline heating, marine installations, and pipeline laying. "All contracts are pending Norwegian Ministry of Petroleum and Energy approval of the Alve plan for development and operation," Statoil said.
Alve field was proved in 1990 and is a smaller-scale gas and condensate find in production license 159B, around 15-km southwest of Norne field. The find comprises the Garn, Not, Ile, and Tilje formations. Proved gas reserves of 6.8 billion cu m and 8.3 million bbl of condensate lie in the Garn and Not formations.
Statoil has a 75% share in Alve. Danish Oil & Natural Gas has 15%, and Norsk Hydro has 10%.
Contact Uchenna Izundu at [email protected].