Statoil awarded contract for design and construction of the Asgard subsea gas compression to Aker Solutions.


01.12.2010  + + +  In October 2010 the Åsgard licence decided to go ahead with its concept involving gas compressors installed on the seabed, or subsea gas compression. 

Åsgard may be the first installation worldwide to employ seabed processing involving gas compression, and this represents an important technological leap in the development of fields in deep and demanding waters. The contract for the design and construction of the subsea gas compression is the biggest contract award on the imminent Åsgard development project. 

“The development of gas compression on subsea installations creates some exciting opportunities for the industry, and our choice of concept has been met with great interest by Norwegian and international suppliers,” says Vidar Birkeland, acting head of procurement in Statoil. 

When gas is produced, the pressure in the reservoir decreases and the well flow may need boosting in the form of compression. In many instances, subsea compression technology is necessary to create enough pressure for the hydrocarbons to travel up the pipelines to the receiving terminal. 

The subsea compression system provides improved energy efficiency and safety, and lower investment and operating costs when compared to using a traditional platform and is a concept suitable for most large subsea gas fields. 

Aker Solutions' scope of work for the subsea compression system includes a subsea compressor manifold station (SCMS), subsea compressor station (SCSt) template structure, three identical compressor trains, all electrical control systems, high voltage electrical power distribution system, topside equipment, and tooling, transport and installation equipment. 

The contract is worth an estimated US $552 million (NOK 3.4 billion). The contract’s duration will be until the end of 2014. The contracts for modification, pipelines, marine operations and other major procurement items in connection with the Åsgard development will be awarded in the course of the coming year. 

“There still remain large volumes both on Åsgard and in adjacent areas. Volumes that we will not be able to produce using current facilities and the existing installation. With the help of compressors we can recover NOK 28 billion cubic meters of gas and 2.2 million cubic meters of condensate from Midgard and Mikkel. This makes Åsgard subsea compression one of our biggest projects on the Norwegian continental shelf (NCS),” says Ståle Tungesvik, head of reserves and business development in Exploration and Production Norway. 

This is one of the most important measures Statoil has implemented in order to increase recovery from existing NCS fields. Subsea gas compression represents a considerable technological leap for the industry. With this technology in place it can considerably boost recovery rates and lifetimes for several gas fields. 
The contract award is contingent on a positive investment decision due to be taken in the first quarter of 2011. 

Åsgard is located at Haltenbanken outside Norway in water depths varying from 240-310 metres. The Midgard and Mikkel reservoirs contain gas and condensate that are transported through long distance flowlines to the Åsgard B platform.

Source: Statoil, Aker Solutions
From Offshore Magazine / PennEnery