Shell Opts for Subsea Compression on Ormen Lange Phase 3

Laxman Pai
Monday, January 21, 2019

Norske Shell, the Norwegian subsidiary of Royal Dutch Shell, announced it has decided to go with subsea compression as a concept for the Ormen Lange Phase 3 to increase the recovery rate from the reservoir.

"This is an important choice, where we have evaluated a number of alternative concepts. Subsea compression will result in a significant increase in what is possible to produce from Norway's second largest gas field, by reducing the pressure near the wellheads," said Rich Denny, CEO of Norske Shell in a press release from the service provider for the exploration and production of oil and gas.

"We have managed to reduce costs by more than 50 per cent compared to the first time we considered offshore compression for Ormen Lange. This demonstrates that it was a right decision to stop the project in 2014 and look at all opportunities again," he added.

Arne Dahle, project manager at Shell said, "We have worked closely with suppliers and partners with a focus on optimizing work volume, costs, safety, environment, and using learning from similar projects. This has resulted in a number of competitive alternatives, such as unmanned platform solutions and several subsea concepts."

The partnership will now choose between two remaining options for subsea compression; one for wet gas developed by OneSubsea and built on technology installed on Gullfaks, and a wet gas-tolerant system from TechnipFMC, which is based on experiences from the Åsgard field. Both of these options will need power from land.

The choice of underwater concept is expected later in 2019, followed by investment decision in the Ormen Lange license with Shell (operator), Petoro, Equinor, ExxonMobil and INEOS.

Categories: Subsea Europe Energy

Related Stories

Santos and QatarEnergy Agree Mid-Term LNG Supply

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Japanese Oil and Gas Firm Enters Two Blocks off Malaysia

UK Firm Secures Exploration Extension for Two Blocks off Vietnam

Azeri SOCAR Plans New Agreements with Oil and Gas Majors

EnQuest Bags Two Production Sharing Contracts off Indonesia

VARD Snags $125M Shipbuilding Deal for Subsea Construction Vessel

CNOOC Discovers ‘Vast Exploration Prospects’ in China’s Beibu Gulf Basin

Current News

Santos and QatarEnergy Agree Mid-Term LNG Supply

PTTEP Hires Energy Drilling’s Rig for Southeast Asia Offshore Job

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com