Statoil fields starting up four months before schedule – Tu.no

STAVANGER, ONS: A proud chief of the Norwegian continental shelf, Statoil Arne Sigve Nylund, played Christmas music in front of today’s press conference.

I hope we have given you some Christmas spirit. We can now announce that production on Gullfaks Rimfaks valley is under way, although it was planned launched on Christmas Eve.

Even more gratifying than earlier production start is that the costs for this rapid expansion is reduced from 4.8 billion to 3.7 billion.

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Boasts Technip

Project Director Hilde Reme says to TU that especially Technip which has been responsible for the entire marine operation, has done a fantastic good job.

And according Reme, due not cost effectiveness just drop in oil prices.

– All subsea equipment was ordered in 2013 so it was not so much to do with. When we submitted a plan for development and operation in December 2014, the price had fallen and all the other work is related to the group’s improvement based on lean processes, says Reme.

Gullfaks Rimfaks valley is built with a standard subsea template with two single gas production wells. At a later stage it may be linked to two other wells. The well stream is connected to existing pipeline to Gullfaks A platform.

Leverages Infrastructure

It is primarily produced gas from Gullfaks Rimfaks valley. This is transported by pipeline to the processing at Kårstø. The whole project is part of Statoil’s plan to utilize existing infrastructure in mature fields.

– We have reduced mass equipment topside and able to reuse pipelines. I would also emphasize Wood Group which has done an excellent job. All vendors have delivered on time and we have had good weather, says Reme.

Arne Sigve Nylund says that the group now has projects worth 280 billion under development. 80 percent of this is on the Norwegian shelf. Balance Award for projects has been reduced from $ 70 per barrel to about $ 40.

– We see improvements throughout the value chain. This is a tough process for everyone involved, but it is absolutely necessary to be competitive, says Nylund.

The recoverable reserves in Gullfaks Rimfaks valley is approximately 80 million barrels of oil equivalent, mostly gas. Project partners are Statoil as operator (51 percent), Petoro (30 percent) and OMV (19 percent).