PGS FPSO Petrojarl I Starts Production on the Glitne Field

abarrelfullabarrelfull wrote on 11 Jan 2013 13:45
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Aug. 28, 2001

Petroleum Geo-Services ASA (NYSE:PGO)(OSE:PGS) announced today that the "Petrojarl I" FPSO has commenced oil production from the Glitne field, operated by Statoil, in the Norwegian sector of the North Sea. The "Petrojarl I" production on the Glitne field is expected to last for approximately 30 months, with an initial peak production of approximately 38,000 to 40,000 barrels of oil per day. PGS will manage the production operations from its Trondheim office and perform shuttling from the field with its shuttle tanker, "Petroskald."

The "Petrojarl I" was built by NKK in Japan in 1986, and the Glitne contract represents the tenth consecutive contract on which this vessel has been deployed in the North Sea over the past 15 years. Prior to its production start-up, the "Petrojarl I" went through an extensive upgrade at Kvaerner's Rosenberg yard in Stavanger, Norway. The upgrade to the Petrojarl I included a lifetime extension of at least 15 years under Norwegian Shelf conditions, renewal of DnV class, re-certification to comply with the latest Norwegian regulations and extensive upgrades to the vessel's process and control systems, including gas and water injection. The "Petrojarl I" is also the first FPSO to carry facilities for re-injection of produced water and low-pressure gas driven diesel engines which will minimize any environmental impact.

Reidar Michaelsen, Petroleum Geo-Services' chairman and chief executive officer, stated, "The start of the 'Petrojarl I' production on the Glitne field is an important strategic milestone for PGS. We are extremely pleased to be awarded our first life-of-field contract in Norwegian waters; and our relationship with Statoil throughout this project has been excellent. PGS now owns and operates the only two contractor FPSOs, the 'Petrojarl I' and the 'Petrojarl Varg,' that are approved for life-of-field operations in Norway, which places PGS in an advantageous position for future work in this demanding market."
PGS Production Group President, Kaare M. Gisvold, added, "The commencement of the 'Petrojarl I' Glitne production demonstrates PGS' operational and technical expertise and the flexible, basic design of the 'Petrojarl I' FPSO. Given the upgrades now undertaken to the 'Petrojarl I,' and the high barriers of entry into the Norwegian Continental Shelf, we expect this vessel to remain in Norwegian waters for the foreseeable future. In fact, discussions are already underway concerning future work for the 'Petrojarl I' in Norway following the completion of this contract."

Statoil Senior Vice President, Henrik Carlsen, stated, "Glitne is the second small oil field that Statoil has developed in Norway, following Yme, which was shut down earlier this year after producing 50 million barrels of oil. Glitne is even smaller, with reserves of about 25 million barrels of oil. The availability of the 'Petrojarl I' makes it possible to develop this field; and Statoil has enjoyed an excellent relationship with PGS throughout this project. Statoil will continue to look for opportunities to develop smaller oil fields using both existing infrastructure and independent solutions, as appropriate."


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