Norway: Statoil Awards Contracts for tie-back of PanPandora and Katla

Two contracts worth around USD 90 million have been awarded to Subsea 7.

These are EPCI contracts, which include engineering, procurement, construction and installation of the pipelines and control cables connecting the PanPandora and Katla fields in the North Sea to existing production systems. The contracts also cover installation of the production system on the seabed. They are the first contracts signed by Statoil for delivery of subsea pipes to the new portfolio of fast-track developments.

“The purpose of fast-track developments is to realise small finds that would generally not be profitable,” says Per Haaland, head of the portfolio of fast-track developments on the Norwegian continental shelf (NCS). “This part of the portfolio helps maintain the production level on the NCS.”

The engineering work starts this month at the supplier’s office in Stavanger. The pipelines will be produced at the spool base on the island of Vigra on the west coast of Norway. Field installation and pipe-laying on the seabed are scheduled for the first half of 2012. Production from PanPandora and Katla is to start later the same year.

“We are signing these contracts earlier than what is normal for traditional project execution,” says Vidar Birkeland, acting head of procurements. “They are important contributions to maintaining the pace of our fast-track projects. Furthermore, Subsea 7 has vessels that are well suited for this work.”

Facts about the Fields and the fast track commitment

• By rationalising the use of time and resources, improving cooperation and adopting standardised equipment, Statoil aims to reduce the norm time for simple developments on the Norwegian continental shelf (NCS) from around five to two and a half years
• All fast-track developments consist of one single subsea template, a few wells and tie-back to existing systems
• The effort is called fast-track and so far it includes seven projects distributed on two waves of projects
• The first four fast-track projects PanPandora, Katla, Gygrid and Vigdis North-East are all on schedule and expected to come on stream in 2012
• The wave two projects are based on experience gained from the first projects and could be developed even faster
• The second wave of projects includes Fossekall/Dompap and Vilje South
• Fast-track developments are needed to make these small volumes profitable and to help maximise the potential of the NCSPanPandora
• Field under development in the North Sea, just south of the Visund field
• To be developed as a satellite field to the Gullfaks C platform
• The volumes of the field are estimated to be around 64 million barrels of oil equivalent, of which one third is oil and two thirds are gas
• The development includes one subsea template and three production wells
• Production is expected to start in 2012

Katla

• Field under development in the North Sea, 11 kilometres south-west of Oseberg South
• To be developed as a satellite field to be tied back to the Oseberg South platform
• The field volumes are estimated at 40 million boe, of which 60% is oil
• A development proposal covers one subsea template with two production wells and two injection wells
• Expected start-up is late 2012

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Source: Statoil, November 14, 2010