Norsk Hydro awards final major Grane contract

Norsk Hydro AS awarded Aker Verdal a 670 million kroner ($70.4 million) contract to construct the steel jacket for the Grane platform, said Norsk Hydro Tuesday. This is the last major contract for the 15 billion kroner Grane project, in the North Sea 185 km west of Stavanger. Partners in Grane will develop the field via an integrated accommodation, process, and drilling platform mounted on the steel jacket.


Norsk Hydro AS awarded Aker Verdal a 670 million kroner ($70.4 million) contract to construct the steel jacket for the Grane platform, said Norsk Hydro Tuesday. This is the last major contract for the 15 billion kroner Grane project, in the North Sea 185 km west of Stavanger.

Partners in Grane will develop the field via an integrated accommodation, process, and drilling platform mounted on the steel jacket.

Engineering of the 17,500-tonne, 150-m tall steel jacket will begin immediately. The jacket should be complete March 1, 2003, said Norsk Hydro.

The partners previously awarded the production module contract to Kvaeligrner Oil & Gas, a unit of Kvaeligrner ASA, and the drilling module contract to Aker Maritime Inc.

Hydro said that with its estimated recoverable reserves of 700 million bbl of oil, Grane is the largest proven oil field in the North Sea still to be developed. The field is expected to reach a maximum output of 214,000 b/d in 2005. The oil will be transported by pipeline to a terminal northwest of Bergen, Norway (OGJ Online, Oct. 12, 2000).

Hydro owns 24.4% interest in Grane; the Norwegian state's direct financial interest holds 43.6%; ExxonMobil Corp., 25.6%; and Statoil holds 6.4%. Statoil recently announced its intent to sell its interest in Grane to Conoco Inc. (OGJ Online, Oct. 25, 2000).

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