Hydro has awarded Subsea 7 a contract for work on the Oseberg Vestflanken and signed a letter of intent with Subsea 7 for work on the Tune Phase 2 project.
The contract comprises flowlines, umbilicals, and installation of a manifold on Oseberg Vestflanken. It is an engineering, procurement, construction, and installation (EPCI) contract for two 9-in. transport flowlines, an umbilical from the substructure on Oseberg Vestflanken to the Oseberg field center, and installation of a manifold at Oseberg Vestflanken.
Subsea 7 will construct work on the flowlines at its fabrication yard in Gaupne in Norway. Project work and procurement will start immediately. Fabrication will be completed this winter, before installation at the field in late summer 2005.
The contract is worth NKr260 million.
Oseberg Vestflanken is part of Oseberg Unit and will be developed as a subsea installation tied in to Oseberg field center, 9 km away.
Gross recoverable reserves are 5.4 MMcm of oil and 5.6 bcm of gas.
Partners in Oseberg Vestflanken are Norsk Hydro Produksjon a.s, operator with 34%, Petoro AS 33.6%, Statoil ASA 15.3%, Total E&P Norge AS 10%, Mobil Development Norway AS 4.7%, and Norske ConocoPhillips A/S 2.4 %.
The letter of intent includes flowline, umbilical, and installation of a structure on the Tune Phase 2 project. The project work will start in spring 2004.
The agreement is an EPCI contract of an 8-in. flexible flowline, an umbilical between the subsea structures on Tune and Tune Phase 2, and installation of protection structure on the Tune Phase 2 field.
Subsea 7 will complete engineering and fabrication in 2004 and 2005, and start installation on the field in late summer 2005.
The agreement is pending the approval from the license partners and the authorities before the final signing of this agreement, planned for June 2004.
Production from the Tune field started in November 2002. The gas field is 10 km from Oseberf field center. Phase 2 will bring recoverable gas reserves from 13 to 18.8 bcm.
Partners in the Tune license are Norsk Hydro Produksjon a.s, operator 40%, Petoro AS 40%, and Total E&P Norge AS 20%.
04/05/04
