Kårstø contract to Kellogg

May 18, 2006, 11:00 CEST

On behalf of the operator Gassco, Statoil has awarded M W Kellogg an engineering contract for the upgrading and possible development of the gas treatment plant at Kårstø, north of Stavanger.

The contract is for preliminary engineering and has a value of around NOK 130 million, including options. It also contains an option for detail engineering.

"Kårstø will be upgraded and expanded in coming years," says Arnulf Østensen, vice president for technical operations at Gassco. "As well as receiving gas from new fields, parts of the existing facility need to be improved."

Kårstø is a hub for oil and gas production from 30 larger and smaller fields in the North Sea and the Norwegian Sea. The oldest part of the plant began operating in 1985.

"After 20 years of operation, an upgrade is needed. Kårstø is to remain a reliable facility with high regularity in the future," says Knut Barland, vice president for processing and transport in the Natural Gas business area in Statoil. "That's why it's important to carry out this work that is now commencing."