Biggest Alve contract ready

February 1, 2007, 08:00 CET

Operator Statoil has awarded Aker Kvaerner Offshorepartner (Akop) a contract worth NOK 390 million in relation to the Norwegian Sea's Alve development.

During the first quarter of this year, several Alve contracts worth around NOK 900 million will be agreed.

The Akop contract covers completion of upgrading work on board the Norne production and storage vessel for tie-in to the wellstream from Alve.

The Alve gas field will be phased in with existing infrastructure on the Statoil-operated Norne field.

"The contract with Akop is the project's biggest," says Sven Erik Mack, procurement manager on the Alve project.

"The scale of the work is relatively comprehensive and will be prioritised and followed closely during the entire project implementation, up to production start-up in 2008."

Earlier, contracts for pipeline engineering have been awarded to Det Norske Veritas (DNV) and to Sumitomo/Japan Steel Works for purchase of tubing.

During the first quarter, contracts will be agreed for subsea production equipment, flexible risers, cables for pipeline heating, marine installations as well as pipeline laying.

All contracts are pending Norwegian Ministry of Petroleum and Energy (MPE) approval of the Alve plan for development and operation (PDO).

The Alve field was proven in 1990 and is a smaller-scale gas and condensate find in production licence 159B, around 15 kilometres south-west of the Norne field. The find comprises the Garn, Not, Ile and Tilje formations. The reserves proven lie in the Garn and Not formations.

A maximum gas production of around 4 million cubic metres (scm) of gas per day is expected. Reserves are estimated at 6.78 billion scm of gas and 8.3 million barrels of condensate.

Plans call for drilling to start on 1 August 2007 and production to commence in December 2008.

Statoil has a 75% share in Alve. The other licensees are Danish Oil and Natural Gas (Dong) with 15% and Hydro (10%).