Procurement for Tyrihans

July 14, 2005, 14:00 CEST

Statoil has begun work on procurement for the development of the Tyrihans oil and gas field in the Norwegian Sea. Development costs are estimated at just below NOK 14 billion.

The Transocean-owned Transocean Arctic rig has been chartered for drilling and completion work. This contract is worth roughly NOK 2 billion over a three-year period. Total costs for drilling and completion are estimated at NOK 5 billion.

A contract has also been placed with the German firm Butting for the delivery of steel pipe for the 43-kilometre production pipeline linking the Tyrihans seabed templates with the Kristin platform, where the wellstream from Tyrihans will be processed. This contract is worth more than NOK 300 million and is the first of several pipe orders.

The pipe is to be delivered in December 2006 so that pipelaying can be carried out during the 2007 laying season, reports Åmund Fløgstad who is responsible for procurement in the Tyrihans project.

An agreement has also been concluded with the Danish company Rambøll for engineering work in connection with pipelines and their routes. IKM and Nemo, both Norwegian companies, are subcontractors of Rambøll.

The Tyrihans project is currently about to seek tenders from contractors relating to installation of pipelines.

A tender for delivery of seabed production systems to be used on Tyrihans will be sent out during August. Contract awards are scheduled for December this year and will coincide with the point in time when the plan for development and operation (PDO) will possibly be approved by the authorities.

A number of other tenders for various marine activities will be prepared during this autumn, Mr Fløgstad notes.

Alterations to the Kristin platform will be necessary although some modifications for Tyrihans were made while the platform was being built. A 250-tonne process module is to be constructed for installation on the platform during 2008.

Modifications and upgrading will also be necessary on the Åsgard B platform, which will provide pressure support to Tyrihans.

Alterations and upgrading work for Kristin will be put out to tender in the spring of 2006, with contract awards scheduled for July 2006. Tenders for modifications to Åsgard B are expected to be sent out during this autumn and next spring, and contracts will be awarded shortly after.

"It is a requirement in modification work on platforms that the work should be done to the greatest extent to coincide with other work on board, in order to gain synergy effects and the shortest possible disruption to production," Mr Fløgstad notes.

Production start-up for Tyrihans is scheduled for 2009, when there is expected to be spare production capacity on the Kristin platform.