NORSK HYDRO LETS NJORD FIELD CONTRACTS

Norsk Hydro AS has let contracts for subsea equipment and a storage tanker for development of Njord field in the Norwegian Sea. A production semisubmersible rig will be used to develop Njord, with oil production through 15 wells and oil storage in a tanker moored 2.5 km away. Block 6407/7 Njord field has estimated reserves of 220 million bbl of oil and 175 bcf of gas. Hydro estimated development costs at $890 million. It has slated first production for Oct. 1, 1997, but this depends on the

June 19, 1995

2 min read

Norsk Hydro AS has let contracts for subsea equipment and a storage tanker for development of Njord field in the Norwegian Sea.

A production semisubmersible rig will be used to develop Njord, with oil production through 15 wells and oil storage in a tanker moored 2.5 km away.

Block 6407/7 Njord field has estimated reserves of 220 million bbl of oil and 175 bcf of gas.

Hydro estimated development costs at $890 million. It has slated first production for Oct. 1, 1997, but this depends on the development plan receiving government approval in June.

In March, Hydro let contract to Aker AS, Oslo, to build the production unit according to its P45 concept. The rig will have capacity to produce 65,000 b/d of oil and 350 MMcfd of gas (OGJ, Mar. 27, p. 31).

This month Hydro let a $50 million contract to Kvaerner AS, Oslo, for subsea Christmas trees and control and hookup systems for the wells. Delivery will start in May 1996.

The operator also signed a letter of intent for construction by Finland's Kvaerner-Masa Yards Oy of a tanker to store as much as 690,000 bbl of crude oil. The contract is worth $70 million.

PROJECT DETAILS

Kvaerner said offloading into shuttle tankers will be through a flexible hose in the storage tanker's stern. Offloading will be at rates up to 8,000 cu m/hour.

The storage unit will be unmanned during Dermal operation. A crew will land by helicopter to offload the cargo every 10 days.

Hydro said three production wells will be drilled in the field next year, ahead of installation of the floater. A drilling rig will be chartered early next year.

Twelve wells will be drilled from the platform. Full development of Njord will require 10 producers, four gas injectors and a water injection well.

The official said some of the wells will have U-shaped profiles, while most will have horizontal sections, to maximize production from Njord's complex reservoir.