Oseberg area partners submitted an amended plan for development and operation (PDO) to Norwegian authorities that aims to reduce CO2 emissions from Equinor Energy ASA-operated Oseberg field center and the Oseberg South platform while increasing gas production.
Oseberg will be developed from primarily being an oil field to becoming a substantial gas producer with large remaining gas resources, Equinor said in a release Nov. 26.
Two new compressors will be installed to boost recoverable gas volumes and the Oseberg field center and Oseberg South platform will be partially electrified.
The 10 billion (NOK) investment is expected to reduce CO2 emissions by an estimated 320,000 tonnes/year.
Plans call for start-up of the new infrastructure in 2026.
Work on the platforms includes installation of three modules totaling 3,400 tonnes. Rebuilding of Oseberg field center will take 4 years to complete.
Oseberg is the third largest oil producer on the Norwegian continental shelf. When Oseberg came on stream, it was expected to produce around one billion bbl of oil. Now, partners expect the field to produce about 3.2 billion bbl of oil. Oil production is in the tail phase, but 60% of the gas resources are still in the ground, Equinor said.
For the year 2020, Oseberg emissions totaled about one million tonnes of CO2. Since 2010, emissions have been reduced by around 15%,
In March 2021, Equinor obtained a license from the Ministry of Petroleum and Energy (MPE) to construct, own, and operate necessary electrical facilities to provide Oseberg field center and Oseberg South platform with power from shore. Oseberg will have a total power demand of up to 105 MW. The project will also prepare for any full electrification of the installations in the future.
It is estimated that more than 70% of investments in the Oseberg upgrades will go to suppliers in Norway.
Contracts
Aibel AS has been awarded the contract for engineering, procurement, construction, and installation (EPCI) for partial electrification of Oseberg field center and Oseberg South, as well as upgrading of the gas processing capacity on the Oseberg field center.
The scope of work includes electrical installations in a new substation at Kollsnes. The contract is valued at more than four 4 billion NOK. Three modules will be constructed at Aibel’s yard in Haugesund, and most of the engineering and management will be carried out at Aibel’s office in Bergen, supported by their offices in Stavanger and Oslo.
Nexans has been awarded a framework contract for delivering subsea power cables. The first assignment will be to deliver a 132 km cable for Oseberg. The cables will be fabricated in Halden and are scheduled to be installed in 2023. The contract value is calculated at more than 800 million NOK.
Heerema Marine Contractors has been awarded a contract for transport and installation at an estimated value of 60 million NOK. In the summer of 2024, the Sleipnir vessel is scheduled for lifting in place the three modules currently under construction.
Skanska Norge AS has been awarded a contract for construction of a substation, cable trenches and landfall at Kollsnes. This contract is a cooperation with the Troll West electrification project.
The contracts are subject to government approval of the plan for development and operation.
Equinor is operator of the license with 49.3%. Partners are Petoro AS 33.6%, TotalEnergies EP Norge AS 14.7%, and ConocoPhillips Skandinavia AS 2.4%.