Statoil has awarded Bergen Group Rosenberg a contract for building and installing a compressor module on the Kvitebjorn platform in the North Sea.
This will contribute to improving the recovery rate and accelerating production at the Kvitebjorn field by allowing for production with reduced wellhead pressure.
The engineering, procurement, construction, installation and commissioning (EPCIC) contract also includes an option for tie-in of a condensate pipeline to the future Valemon platform.
“The pre-compression project strengthens the Kvitebjorn field as an important producer of gas and a hub for further transport from the field,” says Jannicke Nilsson, senior vice president for operations North Sea in Exploration & Production Norway.
“The compression module will also enable us to produce gas and condensate even faster and thus help to maintain Statoil’s production level.”
In addition to the process equipment the module consists of a gas-turbine-driven compressor which compresses the gas before it is piped to Kollsnes.
The Kvitebjorn pre-compression project will increase production of gas and condensate from the Kvitebjorn field by approximately 35 million standard cubic metres (mscm) of oil equivalent and thus increase the recovery rate from 55% to 70%.
Without this pressure increase the production from the field would have to be closed down at a much higher wellhead pressure and production would decrease from 2013 with today’s known resources.
The estimated value of the contract is NOK 1-1.5 billion.
“Large modification projects like low pressure production is something we will see more of in the years to come,” says Vidar Birkeland, acting chief procurement officer at Statoil.
“This is an important contribution to improved recovery and life time extension at the Kvitebjorn field, and for the total value creation from oil and gas activities on the Norwegian continental shelf.”
The production of the compressor has already started. The offshore installation will take place from 2012 until completion in early 2014.