Statoil starts Valemon construction process

Statoil has submitted a development plan for the Valemon field in the North Sea to Norway’s Ministry of Petroleum and Energy.

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Offshore staff

STAVANGER -- Statoil has submitted a development plan for the Valemon field in the North Sea to Norway’s Ministry of Petroleum and Energy. The company aims to start production from the field in 2014.

Valemon contains reserves of around 206 MMboe, with an estimated development cost of almost $3.6 billion. 

The development plan calls for a fixed steel platform to separate gas, condensate, and water in the well stream. Gas will be transported via the existing pipeline from Huldra to Heimdal, for onward transport to markets in the UK and mainland Europe. Produced condensate will be piped to Kvitebjørn for stabilization and subsequent delivery to the refinery at Mongstad, near Bergen.

Statoil has already placed a number of contracts, including a letter of intent to Heerema Vlissingen in The Netherlands for construction of the 9,200-metric ton (10,141-ton) steel platform jacket.

Heerema Marine Contractors Nederland has a similar preliminary order for transport and installation of the jacket, in 135 m water depth. The jacket, which should be completed in May 2012, will be 157 m (515 ft) tall, with a footprint of 45 x 45 m (147 x 147 ft) and a top area of 26 x 30 m (85 x 98 ft).

Statoil will issue contracts for the topsides (including the living quarters), pipelines, subsea umbilical, and marine operations during 2011-13.

Plateau production from Valemon will reach around 3 bcm/yr of gas. The Heimdal platform needs these extra volumes to extend its commercial life, and Valemon’s contribution should also make it possible to exploit other gas reserves in the area.

Valemon is situated in between the Kvitebjørn and Gullfaks South fields, roughly 160 km (99.4 mi) west of Bergen. Statoil estimates the field’s recoverable reserves at 26 bcm of gas and 31 MMbbl of condensate. Statoil is operator, in partnership with Petoro, Enterprise Oil, and Total.

10/22/2010

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