Increased Oil Recovery News

Swedbank’s chief economist, Harald Andreassen, isn’t “too hopeful” about the long-term prospects for the oil price, but then again, “I’m less certain of this than I’ve ever been as an economist,” he told a floating production conference in Oslo. After two-and-half years of oil-price collapse followed by layoffs in the thousands; stacked oil rigs and order freezes for offshore shipping, price insecurity itself is a partial expression of confidence. Beneath some palpable yet halting movements toward recovery in 2017…

There are new-builds, and there are conversions. In lean times, there’s also “life-extension” for FPSOs increasingly seen as the best hope of developing oilfields too pricy as platform projects. Life extension is about making first-time money, cutting costs or continuing to earn when a field or floater enters a new stage. It’s also about safety. Life extension involves major, multiyear considerations for operators and FPSO contractors, and for all approaches to longer life, history is the great decider.

There are new-builds, and there are conversions. In lean times, there’s also “life-extension” for FPSOs increasingly seen as the best hope of developing oilfields too pricy as platform projects. Life extension is about making first-time money, cutting costs or continuing to earn when a field or floater enters a new stage. It’s also about safety. Life extension involves major, multiyear considerations for operators and FPSO contractors, and for all approaches to longer life, history is the great decider.

The licensees in the Johan Castberg and Snorre 2040 licences have decided to spend more time on the projects. “Castberg and Snorre 2040 are two major and important projects in our portfolio, and it is important that we find sound and robust development solutions for them,” says Ivar Aasheim, Statoil’s senior vice president for field development on the NCS. Statoil and its partners have put in an extensive effort to develop cost-effective solutions for the projects. “We see that our efforts have yielded results, and we are focused on reaping the full benefits of this in a way that ensures a sustainable and profitable utilisation of the resources in the Snorre and Johan Castberg fields. The recent decline in oil prices emphasises this,” Aasheim says.

More oil and gas projects in Norway could be put on hold because of rising costs, adding to a growing list of developments that have been delayed or called off, Bente Nyland, the head of the Norwegian Petroleum Directorate said on Thursday. Most vulnerable will be small fields, projects to increase the recovery from producing assets, and new finds further than 40 km from existing infrastructure, Nyland told Reuters. Oil firms are cutting back on capital spending across the world as years of cost inflation has squeezed margins, cutting back their ability to pay dividends.

More oil and gas projects in Norway could be put on hold because of rising costs, adding to a growing list of developments that have been delayed or called off, Bente Nyland, the head of the Norwegian Petroleum Directorate said on Thursday. Most vulnerable will be small fields, projects to increase the recovery from producing assets, and new finds further than 40 km from existing infrastructure, Nyland told Reuters. Oil firms are cutting back on capital spending across the world as years of cost inflation has squeezed margins, cutting back their ability to pay dividends.

Aker Solutions wins a topside modification contract by Statoil to increase oil recovery at Gullfaks South. Estimated contract value is NOK 180 million. The main object of the project is to deliver topside modification for tie-in of two new templates, located at Gullfaks South, to Gullfaks A, plus topside modification for re-routing production from existing template D from Gullfaks A to Gullfaks C. Scope of work under the Gullfaks South increased oil recovery topside project includes engineering, procurement, construction, installation and commissioning assistance (EPCIc). "This will be a challenging and exciting job. It is an important assignment for Aker Solutions, which shows that we are competitive on jobs in all levels of the market.

Statoil ASA (OSE: STL, NYSE: STO) has signed an agreement to exit the Brage licences, farm down in Gjøa and Vega and acquire a 15 % stake in the Edvard Grieg licence near the Johan Sverdrup field in the North Sea. This transaction with the German oil and gas company Wintershall gives Statoil net proceeds of USD 1.45 billion, and begins a strategic partnership between Statoil and Wintershall. The consideration to be paid by Wintershall includes a contingent consideration of USD 100 million relating to the production on Vega. "This transaction realizes significant value for our shareholders, demonstrates the value of our NCS portfolio, and further enhances the financial flexibility of Statoil.

Technip wins a Statoil contract for fabrication, installation & tie-ins of flowlines for the Gullfaks South field development. The Gullfaks South field development is in the northern part of the North Sea, located approximately 190 kilometers northwest of Bergen, Norway, at water depths between 130 and 220 meters. The Gullfaks South project development will contribute to Statoil’s extensive initiatives on increased oil recovery and consists of two manifolds(2) tied back to the existing Gullfaks South infrastructure by 20 kilometers of new flowlines. This development will be based on the use of direct electrical heating and pipe-in-pipe flowline technology.

The Hanseatic trading city of Bergen, on the edge of the Norwegian North Sea, has a long maritime tradition. From shipping to aquaculture to offshore oil and gas, this is a city whose economic identity is defined by its ties to the sea. The city is by far Norway´s largest port, with more than 13 million metric tonnes of cargo transported to and from Bergen in 2010. Bergen is also the country´s largest center for aquaculture and marine science research, and is home to the Institute of Marine Research and an active marine science research centre at the University of Bergen.

On behalf of the partners in the Troll licence, StatoilHydro has entered into an agreement on a two-year extension of a current contract with Odfjell Drilling for the Deepsea Trym drilling rig. “Deepsea Trym has been employed on the Troll field since 2005 and will continue to operate on the field during the extended contract period through 2011,” says Atle Reinseth in the Projects business area. This contract gives StatoilHydro good rig coverage at the Troll field for the next years and allows realisation of the planned drilling activities in the area.

StatoilHydro is investing $413 million in R&D activities in 2008, 20% more than in 2007. The R&D portfolio is divided into: exploration, increased oil recovery, new development solutions, oil and gas value chain, new energy as well as new ideas. Video available includes: headquarter, offshore and onshore facilities shots, as well as new technology projects animations.

The Offshore Technology Conference (OTC) announces 15 winners for its inaugural Spotlight on New Technology Program. These winners are recognized before, during and after the 35th annual OTC, 3-6 May, Reliant Center at Reliant Park in Houston. New Technology program, " said Rod Allan, OTC .04 Chairman. Applications for the Spotlight on New Technology were distributed at OTC .03 and were due 9 January 2004. Submissions had to meet four criteria: new and innovative, proven, broad interest, and significant impact. Winners will be recognized on site at this year's conference, scheduled May 3-6, on the exhibition floor and in the registration area. Spotlight on New Technology will continue as an annual recognition program coinciding with OTC.

Aker Kvaerner has completed its two first offshore Sulphate Removal Units (SRU) commissioning in Brazil. The work has been executed by the Aker Kvaerner subsidiary Aker Kvaerner Process Systems , who is a major supplier of water injection and SRU including services, successfully completed the SRU commissioning on Petrobras FPSO P50 with a capacity of 220,000 BPD of low sulphate water at the end of April 2007. This unit is the first delivered by Aker Kvaerner Process Systems to the Brazilian market. In parallel, Aker Kvaerner Process Systems completed the commissioning of the second SRU supplied to the FPSO MV14 (FPSO Cidade do Rio de Janeiro) operated by MODEC, with a capacity of 120,000 BPD of low sulphate water. Performance guarantee testing was approved by the client.