The vessel, which will be named Sanco Sword, is scheduled to be delivered in Q1 2014 and will be the sister vessel of the Sanco Swift, a 96m designed and built to conduct 3D seismic surveys with up to 14 cables.  The Sanco Swift is due for delivery in July 2013.

“We chose to declare the option for the second vessel because we see a continuous need for new tonnage within the seismic market,” said Ivar Slettevoll, CEO of Sanco Shipping.

The order brings Kleven Maritime’s oder book to a total of nine vessels worth a total value of more than 4 billion NOK, or approximately US$173 million.

“We are impressed by Sanco and their investments in the very advanced seismic market. For us it is of great value to establish a local cooperation also within the seismic segment,” said CEO Ståle Rasmussen in Kleven Maritime.

The Sanco Sword will be of the same ST-324 CD design as her sister vessel, and will be able to accommodate up to 60 people and is designed for worldwide operations.

The audit included verifications onboard Transocean's semi-submersible rig, Transocean Arctic, currently in operation offshore Norway. Photo: Transocean

Norway’s Petroleum Safety Authority (PSA) has issued an order to Transocean Inc. to improve maintenance oversight after the authority carried out an audit of the company and the company’s system for maintenance management revealed “serious breaches” of regulations.

The audit, which focused on activity over a period from January 19 through March 1, 2012, targeted selected parts of Transocean’s maintenance management system, and how it is used and followed up in the organisation onshore and offshore.  According to a press statement from the PSA, the audit activity revealed that Transocean’s maintenance management system still did not satisfy the regulatory requirements. The activity was carried out in the form of spot checks on a random selection of equipment and documentation.

Examples of important factors identified include:

• It emerged during interviews that the new maintenance management system was not very user-friendly.
• Maintenance programs for a number of equipment units and components were missing.
• It was difficult to identify and track randomly selected equipment in RMS.
• It was unclear which method and criteria were used to assess criticality and to determine which equipment/barriers were safety-critical.
• The facility structure (the hierarchy) does not encompass all equipment in such a way that it can easily be identified in the facility, on drawings and in the PM program.
• Deficiencies in the maintenance history system.
• Performance requirements for important barrier elements were not always verified through testing and inspection activities in the maintenance system.

In addition to this, the activity revealed deficiencies in the company’s own follow-up, internal audits and completion of modification and maintenance activities.

On this basis, the PSA issued a notification of order to Transocean on 22 March 2012 and, in accordance with the notification, the PSA has issued the following order to Transocean:

“Pursuant to Section 69 of the Framework Regulations relating to administrative decisions, cf. Section 6 of the Management Regulations relating to management of health, safety and environment, Section 8 relating to internal requirements and Section 21 relating to follow-up, Transocean Offshore ltd NUF is ordered to initiate the following measures:

• Review the management system and implement measures so that the company’s follow-up systems safeguard the intended needs in all parts of the organisation. This work shall include an investigation of why important deficiencies in the maintenance system were not identified and followed up in connection with the process of implementing a new system (RMS).
• Draw up a binding plan and schedule for how this work will be carried out and followed up. This plan must be sent to the PSA by 26 April 2012, together with a response to the audit report,

Aker Solutions' Belly Spar design, showing relative size in a city context, image courtesy Aker Solutions

The Aasta Hansteen is destined for the high seas offshore Norway, at a water depth of approximately 1,300 meters (4,265 feet) and will be the first Spar platform on the Norwegian continental shelf (NCS).  This platform will also the world’s first Spar platform with condensate storage capacity.

Aker Solutions’ announced that they will incorporate a condensate storage feature called a ‘belly.’  The ‘belly’ refers to the increased diameter on part of the circular shaped hull, where the condensate storage tanks are located. This gives the Aker Solutions’ Belly-Spar its characteristic shape.

“The Belly-Spar concept is a result of the innovative spirit and culture among our engineers, who have come up with the right solutions for the challenging conditions on the Aasta Hansteen field,” says Valborg Lundegaard, head of Engineering business area in Aker Solutions.

The mooring system for Aasta Hansteen Spar platform consists of a set of polyester lines. “There are currently no installations on the NCS with polyester mooring. Aasta Hansteen may be the first, and it will definitely be operating in the deepest water,” says Henning Østvig.

In talking with Technip the other day, they weren’t able to give us specific details on any of the features of their spar design, however it’s being designed with lessons learned from the Perdido Spar in the Gulf of Mexico, an ultra-deep water platform they designed for Shell a few years ago, while also incorporating features that will allow it to produce in the harsh weather offshore Norway.

Giving us some perspective on harsh environment design considerations for such a platform, ABS’ Director of Offshore Technology, Sudheer Chand comments:

A facility built for a harsh environment such as offshore Norway will have a number of unique features.  In particular, the structural design may need to be robust enough to deal with the occasional iceflow, and the materials used must be able to maintain their strength and elasticity under very cold conditions.  The machinery and working spaces, must be shielded from the weather and must be able to operate under extreme conditions.  In addition, designs must be scrutinized so that water is not allowed to collect and freeze in crevices or tight spaces.

Both Technip and Aker plan to include steel catenary production risers in their designs.

The field was discovered in 1997 and lies 300km offshore in the Vøring area. The license partners are Statoil (75%), ExxonMobil (15%) and ConocoPhillips (10%).  Together with Haklang and Snefrid South, it is estimated to contain recoverable gas reserves of 40-60 billion standard cubic metres (scm).

The company, an offshore and subsea services provider, said in a filing with the Singapore Exchange that the contract was for marine installation and pipe lay at the Fram H-Nord development in the North Sea, the third phase of the development of the Fram Field which is tied back to the Troll C Platform.

Engineering, procurement and planning activities will commence immediately and the work is set to commence in the third quarter of 2013, the company said.

-By Matthew Allen, Dow Jones Newswires

Troll A production platform, image courtesy Statoil

Aker Solutions has been awarded a contract by Statoil to deliver six subsea trees and a tool package for Troll on the Norwegian continental shelf. Estimated contract value is NOK 350 million.

Scope of work includes six subsea trees, with a possible option for nine further subsea trees, including control systems.

The Troll field lies in the northern part of the North Sea, around 65 kilometres west of Kollsnes, near Bergen.  The field comprises the main Troll East and Troll West structures in blocks 31/2, 31/3, 31/5 and 31/6.  Containing about 40 percent of total gas reserves on the Norwegian continental shelf (NCS), it represents the very cornerstone of Norway’s offshore gas production.  Troll is also one of the largest oil fields on the Norwegian continental shelf. In 2002 the oil production was more than 400,000 barrels per day.

The enormous gas reservoirs lying 1,400 metres below sea level are expected to produce for at least another 70 years.

Under this contract, Aker Solutions will deliver equipment to the oil section of Troll.

“Having been involved in Statoil’s Troll projects from the beginning in 1996, we are proud to still play a part in this industrial milestone. The Troll field represents a cornerstone of Norway’s offshore oil and gas production and we are delighted to be awarded such a prestigious North Sea contract,” says Alan Brunnen, executive vice president of Aker Solutions’ subsea business area.

Image courtesy Aker Solutions

The Troll A gravity-based production platform is the tallest structure ever moved by humans over the surface of the Earth. Its concrete support section has been built for a producing life of 70 years.  The platform is the only one of its kind on the NCS that is powered electrically from land.  The Troll field is also the world’s biggest subsea development with regards to the number of subsea wells.  Last year, Aker Solutions reached a major milestone in delivering the 100th subsea tree to the Troll field. The contract awards and deliveries for Troll have helped to shape and develop Aker Solutions’ subsea business.

A subsea tree is a key technology enabling oil and gas production directly from a subsea well to a processing facility. The tree is essentially an advanced set of valves and is used together with associated technologies to control the well flow. The subsea tree is an integral part of a subsea production system. The tool package is needed to operate the fourth rig to be employed by Statoil on the Troll field.

Aker Solutions’ contract party is Aker Subsea AS. Equipment deliveries will be made from 2012 to 2015.

Gudrun's 7400t jacket is prepared for installation, image courtesy Kvaerner

Total E&P Norge AS has awarded Kvaerner an EPSC-contract (Engineering, Procurement, Supply and Construction) of close to NOK 1.2 billion for delivery of a steel jacket to be located at the Hild Field offshore the Norwegian North Sea.

“We are very pleased to have won our second jacket this year in tough international competition. This is in line with our strategy, and demonstrates our strong position in the jacket EPC market, says Nina Udnes Tronstad, Executive Vice President in Kvaerner responsible for the jacket business.

The contract will be executed by Kvaerner’s yard in Verdal, and includes engineering, procurement, supply, construction, load-out and sea-fastening of the jacket and associated piles. The jacket (16,500 tonnes) and piles will have a total weight of approximately 21,400 tons.

Detailed engineering starts immediately, while fabrication in Verdal will commence in fourth quarter 2012. The project will reach its peak manpower of more than 400 persons in third quarter 2013. The Hild jacket will be delivered in the spring of 2014, and becomes number 42 in the series of jackets delivered by Kvaerner since 1975.

Kvaerner’s yard in Verdal is one of the few yards in Europe specialising in EPC jacket deliveries, with altogether five oil and gas jackets currently in execution for ConocoPhillips in Norway, BP in UK and and the recently awarded Luno jacket for Lundin Norway AS, in addition to 49 jackets for the offshore wind farm project Nordsee Ost for RWE Innogy in Germany.

 About the Hild Field:

The stand-alone development, in a water depth of 115 meters, accesses separate gas/condensate and oil reservoirs. It includes the installation of an integrated wellhead, production and accommodation platform. Processed gas will be exported to St Fergus in the UK via a new link to the existing Frigg UK Pipeline (FUKA). Liquids will be sent to a dedicated storage vessel where water is separated for reinjection, and oil will be exported via shuttle tankers.

“The Hild field development is an important milestone for Total in Norway, made possible thanks to significant technological progress. Innovation has opened up new opportunities for Total offshore Norway, where we will continue to invest annually an average of US$2 billion within the next five years. Norway will remain in the coming years as one of the largest contributors to Group production” said Patrice de Viviès, Senior Vice President Northern Europe, Exploration-Production.

Total holds a 51 % interest together with its partners Petoro (30 %) and Statoil (19 %). Hild’s reserves amount to approximately 190 million barrels of oil equivalent (boe). Production is expected to start end of 2016 and will reach 100,000 boe per day at peak.

Photo: Harald Pettersen / Statoil

(Dow Jones) The Norwegian government Wednesday announced it will start a geological survey of what oil and gas assets the Northern part of a previously disputed area in the Barents Sea could contain, adding to a previous survey of the Southern part of the area.

Norway last summer started collecting seismic data for the Southern part of the area after the country inked a deal with Russia over a maritime border in the Barents Sea region of the Arctic after 40 years of negotiations.

“The area near the border between Norway and Russia could contain significant oil and gas resources,” Norway prime minister Jens Stoltenberg said in a statement.

“This gives new opportunities for jobs and growth in the North.”

The Norwegian government has initiated an opening process in the Barents Sea with the aim to award exploration licenses in the Southern part, but now also wants to collect data about the Northern part of the area in order to be able to safeguard Norwegian interests in case of cross-border deposits.

In Russia, state oil company Rosneft (ROSN.RS) has received three exploration licenses which cover part of the Russian side of the border.

Norway said its seismic investigation will start this summer and will be up at full speed in 2013. In the Southern part of the Barents Sea, the country started a geological survey in the summer of 2011 which continues this year.

-By Katarina Gustafsson, Dow Jones Newswires

OSLO — While recent Norwegian oil discoveries by Statoil ASA (STO) are exciting, the Norwegian oil sector needs access to new acreage to avoid a substantial production fall after 2020, Statoil Chief Executive Helge Lund said Monday.

Lund revived the call for Norway to open up new acreage where development has been blocked because of environmental concerns.

Statoil announced Monday that its Havis prospect holds between 200 million and 300 million barrels of oil equivalent, a discovery that follows other recent exploration successes. This is an “exciting time” for field developments in the Barents Sea, Lund said Monday in an interview with public broadcaster NRK.

Statoil had drilled around 90 wells in the Barents Sea “without cracking the code”, Lund said. But Lund added that with two substantial Barents Sea discoveries in nine months, Skrugard and Havis, “we now understand the area quite well.”

But even with recent discoveries, Norwegian oil and gas production “will fall substantially between 2020 and 2030 unless we get access to new acreage”, he said, adding that politicians should gradually open up “all new areas” that can secure new production after 2020.

Lund said Statoil has not given up getting access to areas outside of Lofoten in northern Norway, where the Norwegian Government is still gathering environmental information and has yet to approve exploration. There is disagreement within the red-green government coalition on oil exploration, with the socialist party opposing drilling outside of Lofoten because of concerns about the impact to fisheries and worries that an oil spill could mar pristine waters.

The Havis discovery was expected to be significant, and the announced size is “about as expected”, said analyst Kim Evjenth at ABG Sundal Collier, adding the news will probably move the stock a bit higher Monday, maybe by “a krone or two.”

“We think the Statoil share should trade up by NOK1.5-NOK2.0,” Trond Omdal at Arctic Securities added, assuming Havis resources at 250 million barrels valued at $4 per barrel. Arctic has a “buy” recommendation for Statoil with a target price of NOK200.

Assuming Skrugard and Havis hold a total of 500 million barrels of oil, combined production will probably exceed 100,000 barrels a day after 2020, Omdal said. Statoil’s share of 50,000 barrels per day is “giving further support to Statoil’s 2020 production ambition of 2.5 million barrels per day.”

The provisional, updated total volume estimate for Barents Sea discoveries Skrugard and Havis is in the region of 400 million-600 million barrels of recoverable oil equivalents.

Havis and Skrugard both lie within the PL532 licence awarded in 2009. Statoil is operator for the licence with 50% ownership. The licence partners are Eni Norge AS (30%) and Petoro AS (20%).

-By Kjetil Malkenes Hovland, Dow Jones Newswires

Photo (c) BP Plc.

By Katarina Gustafsson and Alexis Flynn

BP PLC’s (BP) efforts to monitor and respond to sudden pollution releases such as oil spills in the Norwegian Sea suffer from “very serious shortcomings” that demand immediate improvement, Norwegian regulators said.

Norway’s Climate and Pollution Agency, a directorate under the Norwegian ministry of the environment, in October 2011 performed an investigation during drilling at the Skarv field in the Norwegian Sea that revealed that BP could not document how they have designed preparedness against sudden pollution releases, the agency said Tuesday.

The report is the latest indication of health and safety issues at BP, which was plagued by a massive oil spill in the U.S. Gulf of Mexico in 2010 and by numerous other accidents in recent years. A BP spokesman had no immediate comment.

“We take this situation very seriously,” Bjorn Bjornstad, director of the agency’s department of control, water and international affairs said in a statement.

The October investigation uncovered deviations that included that BP had not established sufficient systems to detect emergency contamination within three hours. BP also could not prove that its preparations were based on national performance standards, the Norwegian agency said.

“Simply put, they were not good enough,” Bjornstad told Dow Jones Newswires, adding that the agency would impose stricter control on BP during 2012.

BP is now undertaking measures to correct the situation and the agency met with the energy major Friday to discuss the issue. The UK company told the agency what measures it will implement to comply with the regulations. BP will shortly present a written report to the agency on the issue.

The measures concerns both the Skarv field and future BP activities in Norway.

The Norwegian agency also said it is not satisfied with its follow-up of the preparedness for acute pollution when it comes to several other operators on the Norwegian continental shelf. The agency earlier this year had talks with both Norwegian oil and gas major Statoil ASA (STO) and French company Total S.A. (TOT) over the same issue.

-By Katarina Gustafsson, Dow Jones Newswires