Norway: Statfjord late life approved

Plans for Statoil’s Statfjord late life and Tampen Link pipeline projects in the North Sea were given the green light by the Norwegian Storting (parliament). Investing NOK 16.1 billion will allow additional volumes to be recovered by converting the field’s installations from handling oil with associated gas to gas with associated oil. A revised plan for development and operation of Statfjord and a new plan for installation and operation of Tampen Link have been submitted to the authorities. Engineering, procurement, construction and installation (EPCI) contracts worth just over NOK 3.1 billion have already been awarded to Aker Kvaerner, Vetco Aibel and Smedvig. The modification work required is put at roughly three million hours offshore and three million engineering hours on land, in addition to some prefabrication. Additional recoverable volumes from the late life project are put at 32 billion cubic metres of gas, 25 million barrels of oil and 60 million barrels of condensate. Tampen Link is a rich gas pipeline which will tie Statfjord to the UK’s Far North Liquids and Gas System (Flags). Running for just over 23km, this 32-inch line is due to be laid in 2006 and to become operational on 1 October 2007.

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