It will be transported via a 43-km (27-mi), 28-in. pipeline from the Edvard Grieg production complex, which will also process Iver Aasen’s wellstream, to the Statoil-operatedGrane oil pipeline, and from there to Sture terminal on Norway’s west coast.
Edvard Grieg, operated by Lundin Norway, is due to come onstream in late 2015 and Ivar Aasen, led by Det Norske oljeselskap, in 2016. The new line will be called the Edvard Grieg oil pipeline.
Statoil, a partner in both fields and operator for the joint venture for oil transport, said the decision was based on a recommendation by Norwegian trunkline operator Gassco. The partners have submitted a plan for installation and operation to Norway’s Ministry of Petroleum and Energy.
“We are an important player in the Sleipner and Utsira area, and are therefore concerned with robust solutions that provide the possibility of expanded activities in the area in the future,” said Tor Martin Anfinnsen, Statoil’s senior VP for trade with crude oil, wet gas and refined products.
Utsira High, location for the two developments and the Johan Sverdrup field, is between the Sleipner and Grane offshore complexes, an area with well-developed infrastructure. But the new line will provide further export options in the region.
Statoil has awarded detailed engineering for the new pipeline to JP Kenny in Stavanger. Welspun in Anjar, India, will manufacture the steel pipe sections, with Bredero Shaw in Leith, Scotland, responsible for corrosion and weight coating. Allseas will perform the offshore installation.
Statoil expects to receive approval for the plan this fall. Pipeline production will be completed this year, it adds, followed by coating and installation of a new “Y” connection point in the Grane oil pipeline in 2014. This will coincide with the planned shutdown of Grane next spring.
Pipelay will start next summer with tie-in operations to follow in 2015.
Statoil estimates the overall cost at $343 million. The pipeline is designed for a 30-year lifespan.