BP: Valhall Redevelopment Contracts Go to Heerema, Aker Kvaerner

Valhall Field, North Sea
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BP on behalf of the Valhall licensees, has entered into final clarifications with a view to awarding key contracts for redevelopment of the Valhall field following a competitive tendering process.

--The Topside Fabrication and Integration contract for the new installation on the Valhall field is being finalized with Heerema.
--The jacket and piles fabrication contract is being finalized with Aker Kværner Verdal.

The Topside Fabrication and Integration contract covers the fabrication, integration, mechanical completion, commissioning assistance and load out of the topsides deck weighing 11,000 tonnes and the flare boom weighing 350 tonnes structures including an option to fabricate the 500 tonnes Solids Handling Module. The value of the contract is estimated to NOK 950 million.

The jacket and piles fabrication contract covers the fabrication of the steel jacket weighing 7,500 tonnes and the 12 piles weighing 4,100 tonnes in total. The contract value is estimated to NOK 450 million.

Aker Kværner will perform their work from their facilities in Verdal. and Heerema will perform the work from their facilities in Zwijndrecht Holland.

The Valhall partners intend to develop a new combined living- and process installation to replace the original installations on the field. The whole field will be supplied with power from a 292km long power cable from Lista. The existing gas turbines will be decommissioned when the new installation starts operating in 2010.

This will make Valhall one of the most environmental friendly fields offshore Norway and will result in a safer and more efficient source of power supply.

The contract award is subject to partner deciding to proceed and governmental approval of the Plan for Development and Operation (PDO), which will be submitted to the authorities at the end of first quarter 2007.

The new production and hotel platform is planned to be in operation during 2010 and has the following main features: design life 40 years, bed capacity 180, oil production capacity 120 mbopd, gas handling capacity 143 mmscf/d, total liquid capacity 200 mbpd (oil and water), design dry weight: topsides/ process utility 13 000 tonnes, hotel module 2600 tonnes, substructure-steel 7500 tonnes.

The Valhall field is located in PL006 / Block 2/8 in the Norwegian North Sea. It was discovered in 1975 and came on stream in 1982. The licensees are: BP Norge As 28.1% (operator), Hess 28.1%, Norske Shell AS 28.1% and Total E&P Norge As 15.7%.

The Valhall complex consists of five separate steel platforms for: quarters, drilling, wellheads, production and water injection respectively. The platforms are bridge-connected. In addition the field has two unmanned flank platforms, one in the south and one in the north, both around 6 kilometers from the field center and Hod Field production is also processed at the Valhall Complex.

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