The Norwegian oil and offshore industry has an impressive project history. Hydro’s Senior Vice President Bengt Lie Hansen and Technical Director Per Kjærnes mention Ormen Lange, T0GI, Troll A and C and Oseberg on the Norwegian continental shelf. And Statoil can undoubtedly add its many billion krone projects to this list.
Both these two oil majors are currently currying favour and hoping to be chosen as partners of the gigantic Shtokman development in the Russian part of Barents Sea.
“Hydro has delivered projects worth more than NOK 100 billion – without exceeding any deadlines or overrunning any budgets. This is something that is noticed,” says Hydro’s Senior Vice President Bengt Lie Hansen.
Hydro wants to take its experience of carrying out huge, complex projects on the Norwegian shelf with it to Russia.
Major challenges
The Shtokman field lies 600 km offshore. The challenges involved in bringing the gas safely ashore are innumerable. Key words such as winter, ice, cold, the lack of light, winterised rigs, 30-35 minus degrees, icebergs, reservoir assistance using compression, logistics, language – are all some of the heavy challenges.
Hydro’s management looks on the distance from the shore as being among the greatest technical challenges involved in the development. The company has spent a lot of time and used a lot of its resources to solve this together with the Russians – most recently with Gazprom.
“We’ve looked at technical solutions and mapped the reservoir,” says Technical Director Per Kjærnes.
Now, Deep Sea Delta, a rig on Hydro contract, is assisting Gazprom’s drilling company, Gazflot, on Well 7 on the Shtokman field.
“The drilling cooperation with the Russians is of great value for all parties. We hope this work will pave the way for a fruitful cooperation in future development stages of Shtokman,” says Per Kjærnes.
A blueprint of the Ormen Lange development
Bengt Lie Hansen and Per Kjærnes choose to look at the Hydro operated Ormen Lange development as the most relevant reference project looking towards a development of Shtokman.
“The challenges involved are much the same,” says Per Kjærnes, who has dealt with the Ormen Lange field since 1996. Together with Bengt Lie Hansen he points out several factors from the Ormen Lange development:
- The technological challenges involved in putting in place one of the world’s largest subsea facilities – and then bringing the gas ashore subsea through 120 km of pipeline.
- The ability to carry out and complete the project within the time limits and costs stated in the project schedule. Start: 1 October 2007. Cost: NOK 66 billion.
- The social responsibility, with the emphasis on creating local and regional effects through deliveries from the local environment. 75% of the deliveries to the onshore facility come from Norwegian industry. This is the largest percentage during the Norwegian oil industry’s 35-year history.
“We believe the Shtokman field can benefit from our experience from the Ormen Lange development,” says Bengt Lie Hansen, continuing; “We have shown that it’s possible to implement a solution that involves bringing the gas ashore via a subsea facility and pipelines.”
Supplier programme in Russia
Hydro has already been in Russia for more than 50 years and has carried out various tasks in connection with the Shtokman field for 17 years. The company has developed a climate of trust and cooperation throughout these years.
“We want to forge links with good suppliers and are clever at understanding the interaction with these suppliers, in which the division of labour, responsibilities and tasks has to be crystal clear,” says Bengt Lie Hansen.
Having carried out a supplier programme in north-west Russia since 2002, Hydro tries to help Russian industry improve in order to meet the requirements of the offshore industry.
A result of the supplier programme is the collaboration between the Murmansk Shipyard and Reinertsen in Trondheim. This has already resulted in several module deliveries to Norway.
Competitive Norwegian industrial cluster
“In developing the Ormen Lange field, the Norwegian industrial cluster has demonstrated the competitive ability of Norwegian industry,” says Bengt Lie Hansen. “DNV’s efforts on the Bluestream pipeline under the Black Sea have also been valuable.”
This applies not least to the collaboration on DNV’s pipeline rules. The further development of these rules will be important when the Shtokman field is to be developed.