Norway: Statoil Awards World’s First Seabed Gas Compression Facility Contract to Technip

Norwegian Statoil is set to develop the world's first seabed gas compression facility following the awarding of a contract worth NOK 1.2 billion (approximately €160 million) to Technip Norway. Technip will handle the marine operations on the facility which will be developed in the Åsgard field offshore from Norway.

Under the agreement, Technip will work on the installation of control and power umbilicals, structures, diverless tie-ins and connection to existing subsea infrastructure.

Statoil expects that the seabed compression facility will majorly increase production from the Mikkel and Midgard gas fields, bringing production up by 278 million barrels of oil equivalent.

"Åsgard seabed gas compression will have a major impact on increased recovery and on the total value added by the Norwegian continental shelf," head of production for the Åsgard area, Astrid Jørgenvåg said. "Åsgard gas compression will help boost considerably the recovery rate and lifetime of several gas fields."

Statoil says the introduction of the seabed gas compression facility will greatly benefit production in the future, describing it as a "quantum leap" for seabed technology, especially in relation to several small and medium size fields. Along with the Åsgard field, Statoil expects to use the technology on the Gullfaks field and on the Ormen Lange field, together with Shell, in the future.

"This is just the beginning," senior vice president for technology excellence, Siri Espedal Kindem said. Technological advances such as seabed compression enable the extraction of oil and gas in places where it would not otherwise have been profitable. We are thus taking responsibility for increased recovery on the Norwegian continental shelf."

Statoil expects the marine operations on the facility to be carried out over 2013 and 2014. Statoil is the operator of the Åsgard field with a 34.57 per cent stake. Petero holds the biggest stake in the field with a 35.69 per cent stake. Eni Norge (14.82 per cent), Total E&P Norge (7.68 per cent) and ExxonMobil Development Norway (7.24 per cent) hold the remaining stakes.