OKEA has July 1st awarded contracts for the Hasselmus project to Subsea Integration Alliance for the subsea pipelines and production systems and to Aker Solutions for the modifications of the Draugen platform.

Subsea Integration Alliance is a strategic global alliance between Subsea 7 and OneSubsea®, the subsea technologies, production and processing systems division of Schlumberger. The project work scope covers the engineering, procurement, construction, and installation (EPCI) of the subsea production systems (SPS) and subsea pipelines (SURF) for a single subsea well with direct tie-back to the Draugen production platform. The SURF scope comprises approximately nine kilometres of pipe-in-pipe flowline and associated structures in water depths of approximately 250 metres. Project management and engineering will commence immediately at Subsea 7’s offices in Stavanger, Norway. Fabrication of the pipelines will take place at Subsea 7’s spoolbase at Vigra, Norway and offshore operations will be executed in 2022 and 2023.

Kyrre Fatval, Project Director Hasselmus Development, says: “This award to Subsea Integration Alliance supports our strategy for early engagement and full subsea system delivery. Working in partnership with Subsea Integration Alliance supports an optimized project solution, early decision making and shortened delivery time, ultimately improving cost efficiency throughout the entire field lifecycle.”

Aker Solutions has been awarded a contract for modifications on the Draugen oil and gas platform for processing of gas from Hasselmus. The scope includes Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) of new equipment. The work starts immediately and is scheduled to be completed in end of 2023.The award follows completion of the front-end engineering and design (FEED) work, and the scope will include hook up of new riser, a new inlet arrangement with electrical heater, new inlet scrubber, valve arrangement, revamp of gas export compressors and modifications to the condensate train.

The work is expected to involve around 190 work-years for Aker Solution own employees. For employees at Aker Solutions’ yard in Egersund, prefabrication for new systems to be installed at Draugen will involve 21 work-years. For Aker Solutions’ offices in Trondheim and Kristiansund, the engineering, procurement and project management will engage around 125 work-years, primarily for local employees. Aker Solutions’ work offshore to install the new systems will involve around 44 work-years.

Kyrre Fatval, Project Director Hasselmus Development, says: “The contract awarded to Aker Solutions follows completion of the front-end engineering and design (FEED) work done by Aker Solutions. Aker Solutions has a strong footprint in Kristiansund and Trondheim area and the job will be execute within the existing modification frame agreement between Aker Solutions and OKEA. Topside scope is planned executed with a minimum of interruption of the ongoing production on Draugen where safe and efficient revamp of the compressor train in the planned maintenance shut-down in April 2023 is a key success factor. ”

The Hasselmus discovery and the Draugen licence

The Hasselmus gas discovery is located on the western edge of the Trøndelag platform in the Norwegian Sea, 7 km northwest of the Draugen platform, in production licence 093. A single well (6407/9-9 T2) was drilled on the Hasselmus structure by A/S Norske Shell in 1999 which encountered a 16 meters gas column and a 6.8 meters oil column in high quality sands at a depth of 1,700 meters.

The Hasselmus project is expected to recover approximately 1.65 GSm3 (10.6 million barrels of oil equivalents) as fuel and export gas and will also make possible the restart of export of associated gas including NGL which is currently being injected into the reservoir.

The development concept is a single subsea well with direct tie-back to the Draugen platform. Production start-up is planned in Q4 2023 with plateau gas production of more than 4,400 barrels of oil equivalents per day gross. The breakeven price for the Hasselmus project is estimated to around USD 28/boe or 85 øre/Sm3. Expected total investment cost for the project is NOK 2.4 billion gross.

OKEA ASA (44.56% WI) is the operator of the Draugen licence and the Hasselmus project. Partners are Petoro AS (47.88% WI) and Neptune Energy Norge AS (7.56% WI).

About OKEA

OKEA shall be the most efficient and profitable developer and operator of smaller fields on the Norwegian shelf. We manage and develop resources on behalf of society. Reducing the footprint from our production is important.