Aibel to assess North Sea Oseberg gas upgrade, power needs

July 9, 2020
Equinor has awarded Aibel a portfolio agreement for modifications to facilities at the Oseberg field complex in the Norwegian North Sea from 2020-2026.

Offshore staff

STAVANGER, NorwayEquinor has awarded Aibel a portfolio agreement for modifications to facilities at the Oseberg field complex in the Norwegian North Sea from 2020-2026.

The first call-off of the agreement concerns a NOK120-million ($12.8-million) contract for front-end engineering and design (FEED) for the Oseberg Gas Capacity Upgrade and Power from Shore (OGP) project.

This is intended to maximize the field’s gas exports through the introduction of low-pressure production and at the same time establish a solution to import onshore power for part-electrification in order to minimize CO2 emissions offshore.

Increased gas capacity through the OGP project will increase the value of future tie-ins to Oseberg, Equinor added.

Over the next year, the OGP FEED will cover new modules required for the field center and associated integration work offshore and at the onshore reception facility at Kollsnes.

If Equinor and its partners take a positive investment decision in late 2021 and secure parliamentary approval for the project, the two companies can enter a call-off agreement for the EPCI.

Aibel’s overall duties for Oseberg will includes study work, further minor FEEDs and major modifications under EPCI projects.

The company will manage the program from its office in Haugesund with support from other branches, with the company’s yard at Haugesund undertaking construction.

“There will be an increased level of project activity at the Oseberg fields in the coming years,” said Peggy Krantz-Underland, Equinor’s chief procurement officer.

“With one main supplier, we will be able to synchronize the different projects schedules, utilize synergies between parallel projects and optimize personnel on board.

“The portfolio agreement will allow us to work with Aibel on Oseberg in an integrated way, focusing on safety, continuous improvement and cost efficiency. It will also create predictability and continuation for supplier’s personnel and sites.”

“Oseberg is a legacy field that has played a key role in developing the Norwegian continental shelf and will continue to be an important hub in the North Sea towards 2040,” said Geir Sørtveit, Equinor’s senior vice president for Operations West.

Equinor operates Oseberg in partnership with state-owned Petoro, Total, and ConocoPhillips.

The field is Norway’s third largest oil producer, having sold around 2.9 Bbbl since production started in 1988.  Oil and condensate are piped to the Sture terminal in Øygarden north of Bergen, while the field’s gas is exported to the UK and Continental Europe.

07/09/2020