PSA Finds Irregularities in Eni’s Goliat FPSO, Statoil Cancels Contract, Noreco Teeters

The Norwegian oil and gas industry has suffered three setbacks in just a matter of hours. 

First, Eni received an audit by the Petroleum Safety Authority (PSA) on the newly built Goliat FPSO (Floating Production Storage and Offloading facility), which indicated 8 "non-conformities", and 8 "improvement points". PSA conducted the audit of electrical installations on the production unit. 

"The audit identified non-conformities relating to: completion and handover to the operational organisation; ignition source control; emergency power; emergency lighting; electrical installations; escape routes from high-voltage installation rooms; maintenance of electrical equipment; bridging of safety functions," reads a note released on Monday. 

Goliat is the first oil field to be developed in the Barents Sea. . 

According to experts, the audit might slow down the project, in a moment Eni is increasing its focus on Egypt. The Milan-based company recently announced it will start new production in the Nile Delta by the end of the month.  

STATOIL CANCELS CONTRACT

Also on Monday, Statoil said it decided to cancel a rig contract with Songa Trym, four months before the expiration of contract on 4 March 2016. 

“Statoil has hoped for further activity in the remaining contract period, but we now realize that we must cancel the contract, as we have not succeeded in finding more assignments. We regret that we need to cancel the contract before it expires,” Tore Aarreberg, head of rig procurements in Statoil, commented in a second press release.  

Songa Trym will be used at the Visund field in the North Sea until Nov. 12 and will be shut down temporarily, said drilling contractor and Songa Trym owner Songa Offshore.  

NORECO UK SERVED A NOTICE OF DEFAULT

A few hours later, the Norwegian company Noreco said its UK subsidiary has been served a notice of default. 

"The default relates to non-payment of a cash call under the Joint Operating Agreement (JOA), and implies that Noreco Oil UK will no longer receive revenues from production on the Huntington field," Noreco wrote on its website on Monday. 

Noreco said that since its subsidiary will not remedy the default, the remaining partners are entitled to exercise forfeiture rights in respect of Noreco Oil UK’s 20% interest in the licence.