STATOIL CITES IMPORTANCE OF SLEIPNER CONDENSATE

Start of production from Norway's East Sleipner field has been important to operator Den norske stats oljeselskap AS in two ways. Statoil supplied first gas to European customers Oct. 1, on schedule in the first stage of the massive Troll gas sales agreement (OGJ, Oct. 11, p. 36). Delivery on time after a troubled field development program was seen by Statoil as crucial to its credibility as a gas supplier.

Nov. 15, 1993

4 min read

Start of production from Norway's East Sleipner field has been important to operator Den norske stats oljeselskap AS in two ways.

Statoil supplied first gas to European customers Oct. 1, on schedule in the first stage of the massive Troll gas sales agreement (OGJ, Oct. 11, p. 36). Delivery on time after a troubled field development program was seen by Statoil as crucial to its credibility as a gas supplier.

On Sept. 19, first condensate was sent from East Sleipner to Statoil's gas terminal at Karsto, Norway, north of Stavanger. This led to Statoil's first marketing of condensate separate from oil and gas.

Statoil sees potential for condensate as a refinery feedstock suited to gasoline and low sulfur gas oil production. The company's share of condensate reserves in Norwegian fields also offers security of supply.

About half of Statoil's future Sleipner condensate production will go to its Kalundborg, Denmark, refinery. This is intended to boost the plant's products quality and competitiveness.

The 3 million metric ton/year Kalundborg plant is being revamped to accept 1 million metric tons/year of condensate feedstock. The revamp is due on stream in late 1994.

CONDENSATE MARKET

"So far the European condensate market has been organized in closed systems," said Rolf Solberg, vice-president, technical, of Statoil's refining and marketing division. "Statoil is now marketing condensate separately from other products."

Unstabilized condensate is sent by pipeline to Karsto. There it is stabilized and LPG removed. Stabilized condensate is then exported in 30,000-50,000 dwt tankers. The first load was sent to Wilhelmshaven in Northwest Germany.

Statoil's share of total Sleipner condensate production will be about 1.3 million metric tons/year.

Kalundborg's requirement for as much as 1 million metric tons/year starting early next year leaves 100,000-900,000 metric tons/year of condensate for Statoil to sell.

"We have not yet decided whether to go for contract or spot sales of condensate," Solberg said. "We must learn more about the market before we decide."

PRODUCTION

East Sleipner field, in Norwegian North Sea Block 15/9, is estimated to hold reserves that include 25 million metric tons of 54 gravity condensate. East Sleipner condensate production is scheduled to peak at 3 million metric tons/year in 1995.

Production of 45 gravity condensate from West Sleipner field will begin in 1996. This will boost combined Sleipner condensate production to a peak of 4.5 million metric tons/year in 1999.

West Sleipner is on the same block as East Sleipner. It will be developed using a wellhead platform in the field and a gas processing platform bridge-linked to Sleipner A platform (OGJ, May 10, p. 34).

Solberg said East Sleipner condensate yields about 60% naphtha and 20% gas oil, with low sulfur content. This makes it suitable for isomerization plant and ethylene cracker feedstock.

Solberg sees increasing volumes of condensate and light crude oils available to Statoil into the next century.

Statoil's share of production could include 2 million metric tons/year from Sleipner and other fields in the Sleipner area, 2-3 million metric tons/year from Troll and other fields in the northern North Sea, and 1-2 million metric tons/year from the Haltenbanken area off mid-Norway.

KALUNDBORG PLANT

The Kalundborg refinery is near Copenhagen. Statoil is spending $350 million to prepare the plant for condensate feedstock. Process plant spending will be $220 million, while $60 million will be for offsite facilities and $70 million for utilities.

"The refinery is already efficiently run," Solberg said. "We are looking to secure its future competitiveness so we have turned to condensate refining. There is no other European condensate refinery on this scale."

Crude oil, condensate, and other feedstocks will be used at Kalundborg. Products will include gasoline to meet future European Commission specifications and gas oil within a 0.05 wt % sulfur limit. Process revamping includes addition of condensate splitting and isomerization, reformer, and desulfurization units.

Offsites work mainly covers installation of storage tanks. This includes a buffer tank to hold 2 hr worth of condensate flow and two 60,000 cu m products tanks.

Main contractor for the revamp is Parsons Corp., London. Equipment is being built in more than 30 preassembled units by subcontractor Belleli SpA, Mantua, Italy. These are to arrive on site early in 1994.