Statoil awarding billion NOK contract for Njord Bravo FSO

April 19, 2018 07:30 CEST | Last modified April 19, 2018 15:20 CEST
Njord Bravo

Statoil is today awarding, on behalf of the Njord license, a contract to Aibel for upgrading of the Njord Bravo floating storage and offloading (FSO) vessel in the Norwegian Sea. The contract value is around NOK 1.3 billion.

“We are pleased to award Aibel this contract today. After several good deliveries, Aibel has proven that the company has both the expertise and ability to handle this type of complex projects,” says head of project development in Statoil, Torger Rød.

The storage vessel will be prepared for extended operation of the Njord and Hyme fields, as well as tie-in of two new field developments in the Norwegian Sea, Bauge and Fenja.

The job involves extensive upgrading and maintenance of the vessel, in addition to installation of equipment on board for reducing emissions to air (VOC facility).

Securing jobs in Haugesund
Aibel will start the work immediately, and the storage vessel is expected to arrive at the Haugesund yard early in July 2018. At peak, the project will engage around 600 people.

The contract provides the necessary basis for safe and efficient project execution.

“We are looking forward to the cooperation with Aibel,” says head of procurements in Statoil, Pål Eitrheim. Njord Bravo is scheduled to be completed at the turn of the year 2019/2020.

The Njord field came on stream in 1997, and both the platform and the storage vessel are now being upgraded for additional 20 years of operation.

In 2016, the platform and the storage vessel were towed to shore, to Stord and Haugesund respectively.

“It has been important for us to make good use of the time ashore in Kristiansund, so extensive work has been carried out while the vessel has been at the yard,” says Rød.

The jobs include disassembly and overhaul of equipment, leading to contract awards worth around NOK 80 million to suppliers in the Kristiansund region.

Torger Rød
Torger Rød
Photo: Arne Reidar Mortensen
Pål Eitrheim
Pål Eitrheim
Photo: Arne Reidar Mortensen

Platform at Kværner’s yard on Stord
In March 2017, Kværner’s yard on Stord was awarded the contract for upgrading the Njord A platform, involving around 3000 man-years. The work is progressing as planned, currently involving topside modifications and reinforcement of the top section of the hull.

The field is scheduled to start production in the autumn of 2020.

The contract will be signed at Aibel’s offices in Haugesund on Thursday 19 April 2018.

Contract signing at Aibel’s offices in Haugesund
Contract signing at Aibel’s offices in Haugesund. (Photo: Øyvind Sætre / Aibel )

Background

Njord Future covers the Njord, Hyme and Bauge fields.

Njord is an oil and gas field in the Norwegian Sea, located around 30 kilometres west of Draugen. Water depth in the area is 330 metres. The field development consisted of a floating steel platform with a drilling and processing facility, Njord A, and a floating storage and offloading (FSO) vessel, Njord Bravo. First oil was in 1997. The field was temporarily shut down in the summer of 2016, and Njord A and Bravo were towed to shore for upgrading to recover the remaining resources from the Njord and Hyme fields.

Hyme is an oil field which is located 19 kilometres north-east of Njord. It consists of a subsea installation which is tied in to the Njord A platform.

The Bauge field is a new field development to be phased in to the Njord A platform. In December 2017, the Fenja licensees decided to phase in the field to the Njord A platform. Remaining resources on the Njord and Hyme fields amount to 175 million barrels of oil equivalent (boe), corresponding to the reserves already produced on the fields since first oil. In addition, 73 million boe will be produced from Bauge. An upgraded field centre and a new infrastructure on Njord are opening opportunities for developing other fields in the area.

Facts about the Njord field - upgrading of existing infrastructure

  • First oil in 1997. Njord was in production from 1997 to 2016, and 54 wells were drilled. Plans call for 10 new production wells on the field
  • In 2016, the Njord A platform and the Njord Bravo floating storage and offloading (FSO) vessel were towed to shore, to Stord and Kristiansund respectively
  • Reserves: 175 million barrels of oil equivalent
  • Capital expenditure: NOK 15.7 billion

Partners: DEA Norge AS 50%, Statoil (operator) 20%, Neptune Energy 20%, Faroe Petroleum 7.5% and VNG Norge AS 2.5%.

 

Facts about the Bauge field – new development

  • The discovery is located some 16km north-east of the chosen tie-in platform, Njord A 
  • The development concept includes one subsea template, two oil producers and one water injector 
  • Reserves: 73 million barrels of oil equivalent
  • Capital expenditure: NOK 4.1 billion

Partners: Statoil (operator) 35%, DEA Norge AS 27.5%, Point Resources AS 17.5%, Neptune Energy 10%, Faroe Petroleum Norge AS 7.5%, VNG Norge AS 2.5%.