North Sea Reporter

Published by KL ENERGY PUBLISHING LTD.

North Sea Reporter is an established and respected weekly publication which provides in-depth news and analysis of the NW European offshore oil and gas industry. 

News

Norske Shell and its partners have submitted a PDO amendment application and taken a final investment decision on the Ormen Lange phase three wet gas subsea compression project that will seek to exploit up to 50 Bcm metres of additional gas reserves in the Norwegian Sea. Shell did not provide a cost estimate for the phase three project, but Norwegian press reports suggested investments would be close to NKr12 billion ($1.39 billion). Shell says Omen Lange phase three will involve installation of a wet gas compressor system in water depths of 850-900 metres close to the Ormen Lange wellheads. The compression system will increase gas flow from the reservoir into the wells and boost recovery. It is intended to produce an additional 30-50 Bcm of gas from the giant field, increasing overall recovery to as much as 85% from 75%. The 120-km distance from shore to the installations will set a new world record for a subsea compression power cable, according to Shell.

Rig market

Well-Safe Solutions has been awarded a maiden contract by Repsol Sinopec for its refurbished semi-submersible Well-Safe Guardian to decommission 14 subsea wells in the UK North Sea Buchan and Hannay fields. The Aberdeen-based contractor says the award is the “first fully-inclusive well decommissioning contract of its kind and enables Repsol Sinopec and Well-Safe Solutions to manage efficiencies, knowledge and cost”. Well-Safe did not go into details on how much the contract was worth other than to describe it as having multi-million-pound value. A company official said the backlog from the Repsol Sinopec award amounted to roughly 14 months of work, but pointed out that all the work may not necessarily take place sequentially. Project delivery will be co-ordinated and managed by Well-Safe Solutions, while Repsol Sinopec will retain oversight of technical delivery as the well operator. Offshore decommissioning of the subsea wells is expected to start early next year.

Renewables

A new Scottish Offshore Wind Energy Council (SOWEC) report to support industry planning for repurposing of oil and gas infrastructure for green and blue hydrogen production in the UKCS was published last week. The report, commissioned from engineering and technical consultancy Vysus Group, follows The Crown Estate Scotland’s recent innovation and targeted oil and gas leasing process for offshore wind farms to help decarbonise Scotland’s oil and gas sector and the opening of the Scottish Government's consultation on a new planning process which will inform the areas to be made available for seabed leases. Brian McFarlane, SOWEC co-chair, says: “This report highlights the readiness of Scottish companies to shift into hydrogen and also sets out a route map on the political, economic, regulatory and technological steps needed to enable the transition.” The report is available at https://www.offshorewindscotland.org.uk/sowec/sowec-publications.

 

Weekly coverage includes:

  • Rig Market - contracts, dayrates and utilisation
  • Drilling – a round-up of North Sea activity  
  • Construction and engineering
  • Field development and production
  • Contract awards
  • Company news
  • Data tables of industry activity
  • Mediterranean & W. Africa briefing
  • News briefs