Statoil awarding contracts for Oseberg Vestflanken 2, Johan Sverdrup and Gina Krog

February 3, 2016 | Last modified August 29, 2017 12:44 CEST
Oseberg Field Centre
Oseberg field centre in the North Sea. (Photo: Harald Pettersen)

The contracts awarded on behalf of the licence partners include marine operations, marine construction, engineering, procurement and construction (EPC) of an unmanned wellhead platform as well as modifications at the Oseberg Field Centre.

The contracts have a combined value of approximately NOK 1.6 billion.

“We are very pleased to be able to award these contracts now to suppliers that all have a good track record for Statoil,” says Torger Rød, senior vice president for project development in Statoil.

Statoil submitted the plan for development and operation (PDO) of Oseberg Vestflanken 2 just before Christmas, and the contract awards are subject to government approval of the PDO.

Torger Rød
Torger Rød, senior vice president for project development in Statoil.. (Photo: Ole Jørgen Bratland)

The field development will provide 110 million barrels of oil equivalent and will be profitable even in a low oil price scenario.

  • Technip Norway A/S has been awarded contracts for pipe laying at Johan Sverdrup and Oseberg Vestflanken 2.  The combined contract value is approximately NOK 400 million.
  • Ocean Installer has been awarded contracts for marine construction and installation at Oseberg Vestflanken 2, Johan Sverdrup and Gina Krog. The combined contract value is approximately NOK 200 million.
  • Hereema Fabrication Group has been awarded the contract for engineering, procurement and construction (EPC) of the unmanned wellhead platform at Oseberg Vestflanken 2. Hereema Marine Construction will be responsible for transport and installation of the platform. The combined contract value is approximately NOK 800 million.
  • Aibel has been awarded the contract for engineering, procurement, construction and installation (EPCI) on the Oseberg Field Centre, to prepare the platform for receiving the well stream from Oseberg Vestflanken 2. This contract has a value of approximately NOK 200 million.

Late last year FMC was awarded a contract for delivering two subsea trees for the existing subsea template to be included at Oseberg Vestflanken 2. This contract value is approximately NOK 120 million plus options.

The Oseberg Vestflanken 2 development will consist of an unmanned wellhead platform with 10 well slots. Two existing subsea wells will also be reused. The well stream will be routed to the Oseberg Field Centre via a new pipeline, and the wells will be remote-controlled from the Field Centre.

Wellhead platforms with no facilities, helicopter deck or lifeboats represent a new solution in Norway, but it has been thoroughly tested in other areas, such as the Danish and Dutch continental shelves.

  • Oseberg Vestflanken 2 is the first of three planned phases for developing the remaining reserves in the Oseberg area.
  • The licensees are: Statoil (operator) (49.3%), Petoro (33.6%), Total (14.7%) and ConocoPhillips (2.4%).
  • Location: In the North Sea, around 8 kilometres northwest of the Oseberg Field Centre.
  • Water depth: Around 110 metres.
  • Estimated life: Until 2040.
  • Development: Unmanned and remote-controlled wellhead platform. Two subsea wells to be drilled from existing subsea templates will be included in the project. All wells will be drilled by a jackup Cat-J drilling rig.
  • Located on the Utsira Height in the North Sea, 155 kilometres west of Stavanger.
  • The licensees are: Statoil (operator) (40,0267%), Lundin Norway (22,6%), Petoro (17,36%), Det norske oljeelskap (11,5733%) and Maersk Oil (8,44%).
  • The field will be developed in phases. Production start-up is scheduled for end 2019.
  • The first phase involves the establishment of a field centre consisting of four platforms.
  • Oil from the field will be piped to the Mongstad terminal in Hordaland, the gas will be transported to Kårstø in Rogaland via Statpipe.
  • Peak production will be equivalent to 25% of all Norwegian petroleum production.
  • Water depth is 110 – 120 metres.
  • The field will be operated by electrical power generated onshore.
  • The Gina Krog field is located around 30 kilometres northwest of Sleipner, and 230 kilometres southwest of Stavanger. 
  • Statoil is the operator with an interest of 58.7%. The partners are Total E&P Norge (30%), PGNiG Upstream international (8%) and Det Norske Oljeselskap (3.3%). 
  • Expected recoverable reserves are 225 million barrels of oil equivalent. 
  • Operated from Stavanger. 
  • The gas from Gina Krog will be processed on Sleipner and forwarded via existing pipelines. Oil from the field will be transported via a storage vessel that will be permanently located on the field.
Johan Sverdrup