Statoil has awarded contracts for new light well intervention (LWI) vessels. These “category A” units will contribute to increased recovery from Statoil’s approximately 500 operated subsea wells on the Norwegian continental shelf (NCS).
Statoil has on behalf of relevant licensees awarded a contract to Island Offshore Management and Eide Marine Services for the charter of a total of three LWI vessels.
These purpose-built vessels are used for performing light well interventions, well operations and well maintenance without a riser-based system. Statoil can reduce well intervention costs by about 60% by utilizing a LWI vessel instead of a conventional rig.
“Performing these types of conventional jobs on subsea wells with low volumes of oil in place is expensive. The LWI vessels ensure both cost-efficient and safe operations,” says Statoil’s head of drilling and well Øystein Arvid Håland.
“Having more and new vessels of this category also helps increase recovery from fields on stream by opening new zones in the well, and stopping water production downhole.”
The contracts are worth a total of NOK 9.4 billion (USD 1.57 billion).
Island Offshore vessels Island Frontier and Island Wellserver, which already have contracts with Statoil, have been awarded new five-year contracts. Eide Well Intervention, a new supplier in this segment for Statoil, has been awarded an eight-year contract for their new build, which employs a completely new technology.
The contracts with both companies come into effect in the spring of 2015, and include two options to extend for another two years.
A growing number of discoveries are developed via subsea wells, and it is important both to have equipment capable of maintaining these and to avoid using conventional drilling rigs for this type of work.
The rig market on the NCS is characterized by an aging rig fleet, and it is necessary to ensure sufficient and adequate rig capacity at sustainable rates. To address this, Statoil has put light LWI vessels – category A units – into service on a large scale.
“We have great ambitions and a long-term perspective on the NCS. Using purpose-built rigs and vessels in our operations is an important part of Statoil’s rig strategy. The high number of subsea wells in the future will require maintenance, and we are securing capacity in order to meet this need,” says Statoil’s chief procurement officer Jon Arnt Jacobsen.
“Island Offshore has delivered solid services and we expect the same going forward. At the same time we are pleased to have increased the number of suppliers in this market, and through the Eide Well Intervention newbuild we are also employing the latest available technology. Together these three vessels will provide us with an efficient service fleet for light well intervention services.”
Statoil has been pursuing riserless well intervention in subsea wells since 2000, and the technology has steadily improved.
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OSLO (Dow Jones)– Norwegian oil and gas giant Statoil ASA (STO) Friday said it is introducing a new drilling rig concept for mature fields on the Norwegian continental shelf, in a move to increase the recovery rate from its wells and reduce costs.
The new rigs will cut production costs by around 20%, cut yard delivery costs by 10%, and increase oil recovery, the company said, essential at a time when production from its existing fields is falling by about 5% a year.
The partly state-owned company said it is preparing an invitation to tender for the new jack-up rigs, known as category J, able to operate at water depths from 70-150 meters and drill wells down to 10,000 meters. Statoil will ask for offers for a minimum of two rigs, at an estimated cost of $450 million-$500 million each.
The company said the new rig type could be used on fields such as Gullfaks on the Norwegian continental shelf and Mariner on the U.K. shelf, and that the future Johan Sverdrup field could also be a candidate.
“Statoil has huge ambitions on the Norwegian shelf. We want to maintain current production until 2020,” said Statoil’s Chief Procurement Officer Jon Arnt Jacobsen, adding that the new rigs will help rejuvenate the current rig fleet.
“Today, more than 50 of the rigs on the Norwegian continental shelf are more than 20 years old, which means more maintenance and higher costs,” Jacobsen said.
The most important measure to extract more oil on the shelf is to drill more wells, the company said. The Cat J concept “will have real impact on improving oil recovery,” said Statoil’s Senior Vice President for Drilling and Wells, Oystein Arvid Haaland.
Statoil said the rigs should be owned by the licenses for each field, since the rigs are part of the long term development of the field. The company has discussed this with partners such as the state-owned petroleum company Petoro, said Jacobsen, adding that Petoro “supports this approach fully.”
Statoil is currently developing several large fields, including Gudrun, Dagny, Valemon, Luva, Skrugard and Avaldsnes /Aldous. It also plans increased oil recovery projects on several fields including Snorre, Statfjord, Troll, Oseberg, Gullfaks and Asgard, and fast-track developments on fields like Stjerne, Visund Sor and Hyme, among others.
Statoil is the world’s largest offshore operator and has 44 developed fields on the Norwegian continental shelf that produced about 1.4 million barrels a day in 2010.
The invitation to tender will be issued in July and the contracts will be awarded in the second half of 2012. The rigs will be delivered in the second half 2015.
At 1051 GMT, Statoil traded 0.6% higher at NOK161.40.
-By Kjetil Malkenes Hovland, Dow Jones Newswires
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