Norwegian Sea development project advances

Norway's Den norske stats oljeselskap AS has let a number of contracts for construction of the world's largest production ship and gas production semisubmersible. The units are destined for development of Statoil's Aasgard fields in the Norwegian Sea. The project involves the Smoerbukk, South Smoerbukk, and Midgard discoveries with combined reserves estimated at 800 million bbl of oil and 7 tcf of gas.

Jan. 15, 1996

4 min read

Norway's Den norske stats oljeselskap AS has let a number of contracts for construction of the world's largest production ship and gas production semisubmersible.

The units are destined for development of Statoil's Aasgard fields in the Norwegian Sea. The project involves the Smoerbukk, South Smoerbukk, and Midgard discoveries with combined reserves estimated at 800 million bbl of oil and 7 tcf of gas.

Meanwhile, in the Norwegian North Sea, Oseberg field operator Norsk Hydro AS is campaigning to get Oseberg gas reserves included among those chosen to meet gas supply contracts to European customers starting about the turn of the century.

Aasgard development

Although Statoil decided some time ago to tap Aasgard oil using a production ship, development was sanctioned only after the project was chosen to meet future gas supply contracts to Europe.

After the go-ahead, Statoil decided to develop Aasgard's gas reserves with a production semisubmersible. The other development option was a concrete gas production platform.

A development plan was submitted to Norway's Ministry of Industry & Energy in mid-December. The construction contracts are hinged to approval of the plan.

Statoil let contracts to build the Aasgard oil production ship to Norway's Aker AS of Oslo, ABB Global Engineering AS of Asker, and Maritime Tentech AS of Kristiansand.

The production vessel will be able to produce 200,000 b/d of oil, process 15-16 million cu m/day of gas, and store 150,000 cu m of oil. It will be 276 m long, 45.4 m wide, and have a draft of 26.6 m.

The three contractors have formed a combine for the project, with Statoil setting a target price for facilities to be delivered and the contractors sharing profits and risk.

Aker Engineering and ABB are charged with engineering and purchase of production and processing equipment to be installed on the ship's deck under a contract worth 140 million kroner ($22 million). Fabrication contracts for a deck plant will be let this spring.

Statoil let a 1.52 billion kroner ($234 million) contract to Maritime Tentech for delivery of the ship's hull, which will be built under subcontract by Japan's Hitachi Zosen Corp. Aker's Stord yard will assemble and hook up the ship.

Aker said the combine's contracts have options for 450 million kroner ($70 million) worth of further fabrication and marine installation.

The oil production ship is to leave Stord yard at the end of May 1998 and to be ready for oil production in early August 1998.

Statoil also let a 30 million kroner ($4.6 million) contract to Aker Engineering for design of production systems on the Aasgard gas production semisubmersible.

"The scope may be greater, depending on how the project is implemented," Aker said. "The final choice of concept and plans for how detailed engineering and construction will be organized will be made in 1996. If detailed engineering is dealt with as a separate contract, this will fall within Aker Engineering's responsibilities."

Statoil said the production semisubmersible will be able to produce 36 million cu m/day of gas, 11,000 cu m/day of oil, and 14,000 cu m/day of condensate.

Design work is due to begin immediately and continue until April 1997. The semisubmersible is to be ready for production in October 2000.

Statoil also let a 380 million kroner ($60 million) contract to Aker Elektro, for electrical work in the Aasgard development project. This will involve supply of electrical systems for the oil production vessel and gas semisubmersible.

Oseberg gas

Hydro has been told Oseberg gas will be the first in line to be assigned to sales contracts when the next round of gas supply allocation talks begins. Hydro hopes to begin producing Oseberg gas after 2000 to help maintain oil output as the field declines.

The Oseberg gas development plan submitted to Ministry of Industry & Energy calls for installation of a steel platform and export pipeline in the field, under a 3.6 billion kroner ($550 million) program.

Hydro plans to develop Oseberg using three platforms, with bridge-linked process and drilling platforms forming the field center. The gas platform would be bridge-linked to this field center.

Hydro expects the gas platform and field installations to cost 2.5 billion kroner ($385 million), while construction of a pipeline to send gas to Heimdal field for export is budgeted at 1.1 billion kroner ($165 million).

Oseberg oil production began in 1988 and currently averages 500,000 b/d. Hydro estimates Oseberg gas reserves at 115 billion cu m and said export of gas can begin in 2000.

The gas platform is designed to allow exports of 4 billion cu m/year from Oseberg during 2000-2010, after which flow could be increased to 10 billion cu m/year.