Shell Halts Subsea Compression Project

Costs cited for Ormen Lange field delay in North Sea


Published:

Shell has indefinitely postponed a project to install subsea compression at Ormen Lange field in the North Sea due to rising costs in Norway’s offshore oil sector.

The company explained that compression was not time-critical to the ultimate recovery from the field, the second largest Norwegian gas reservoir, which eventually lose its natural pressure.

“The oil and gas industry has a cost challenge,” said Odin Estensen, chairman of the Ormen Lange management committee. “This, in combination with the maturity and complexity of the concepts and the production volume uncertainty, makes the project no longer economically feasible.”

Shell is the operator of the field with a 17.8%, Norway’ state-owned Petoro has 36.5%, Statoil 25.4%, Dong Energy 14% and ExxonMobil 6.3%. Petoro reportedly was the only partner objecting to the project delay.

Statoil is proceeding with a pioneer seabed compression development at Åsgard field in the North Sea. That US$2.5 billion project is due on line next year.

Archive »Recent Articles

LNG Exports Would Raise NatGas Prices

The Energy Information Administration (EIA) says exports of liquefied natural gas (LNG) from the United States inevitably would increase natural gas prices for domestic consumers.

Lauber Named CEO At MAN Diesel & Turbo

Uwe Lauber has been named chairman of the executive board of MAN Diesel & Turbo.

Seabed Compressor Ready for Tests

Statoil said the world’s first subsea wet gas compressor station is ready for final testing before being installed next year at Gullfaks C field in the North Sea.

EIA Sees Ample U.S. Gas Inventories

The U.S. Energy Information Administration (EIA) has reported that privately-owned gas inventories will be 3532 Bcf (100 x 109 m3) on Oct. 31, lower than at this point a year ago but more than adequate for the coming winter.

USA Compression Fleet Up 24%

USA Compression Partners (USAC) has reported its fleet totaled1.4 million hp (1044 MW) on Sept. 30, up 24% from the third quarter of 2013.