Ormen Lange license Postpones offshore compression

abarrelfullabarrelfull wrote on 16 Apr 2014 07:23
Tags: europe norway shell statoil upstream

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The Ormen Lange Licence has Decided to Postpone the Offshore Compression Project for Ormen Lange, and stop the Ongoing Concept select work.

The license has been working towards a concept select decision for offshore compression, either a subsea compression solution or a tension leg platform solution for Ormen Lange since 2008.

"The decision is based on an updated economic assessment Incorporating new cost information for the current concepts and updated analysis of the reservoir. The current concepts do not Provide an economic return based on the required capital investment and expected production volumes. The updated reservoir analysis also shows that offshore compression timing is not critical to the ultimate recovery of the field, "says chairman of the Ormen Lange Management Committee, Odin Estensen.

"The oil and gas industry has a cost challenge. This, in combination with the maturity and complexity of the concepts and the production volume uncertainty, makes the project economically no longer feasible. The Ormen Lange license remains committed to the ambition of Maximizing the ultimate recovery from the Ormen Lange in a sustainable manner. Significant new information both on reservoir behavior and technology development will Become available in the next few years, and Provide basic two re-evaluate new options ", Estensen says.

"The Ormen Lange Licence believes in the subsea compression technology, and still regards the qualification of this technology to be an IMPORTANT stepping stone for the future Ormen Lange development alternatives. Subsea compression technology is a key contributor for Ongoing and Future Developments field on the Norwegian Continental Shelf ", Estensen says.

The decision is supported by all the Ormen Lange partners, except the company.

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