Norske Shell signs frame agreement for Ormen Lange
AS Norske Shell let a frame agreement for an engineering, procurement, construction, and installation contract to OneSubsea, a Schlumberger Ltd. company, for the supply of a subsea multiphase compression system for Ormen Lange natural gas-condensate field in the Norwegian Sea.
Ormen Lange field, discovered in 1997, has been developed with seafloor installations in 800-1,100 m of water in combination with an onshore plant at Nyhamna in Aukra municipality in Norway for processing and exporting gas. The field is produced through four seabed templates. Compression on the field is expected to increase the recovery of gas and condensate.
Through the contract, OneSubsea and Subsea 7 will supply and install a subsea multiphase compression system that uses the industry’s only subsea multiphase compression technology.
In Phase 1, OneSubsea will engineer and design the system. Following a final investment decision by the license group, the complete scope of the contract will be executed.
To be powered and controlled from the Nyhamna plant 120 km from the subsea location, the tieback distance of the compression system will break a world record for transmitting variable speed power from an onshore facility to equipment on the seafloor.
The system will be installed in 850 m of water and comprises two 16-Mw subsea compression stations tied into existing manifolds and pipelines. This multiphase compression system is surge tolerant, does not require well-stream preprocessing, and is adaptable to varying conditions.
Licensing partners in Ormen Lange are operator Shell, Equinor, Petoro, Ineos, and ExxonMobil Corp.