Statoil Gets Green Light to Use Subsea Facilities on Snohvit

Statoil has received consent to use subsea facilities within the Snohvit project.

The three gas fields Snohvit, Askeladd and Albatross, which are part of the Snohvit project, were proven in the early 1980s.

From the subsea field facilities, the gas will be routed approximately 140 km into the LNG terminal on Melkoya, just outside the city of Hammerfest.

The gas mixture is treated on Melkoya, and the LNG gas is separated and cooled until it takes liquid form. Liquid natural gas (LPG) and condensate will also be produced.

In December 2006, Statoil received the Petroleum Safety Authority Norway's consent to commence use of the land portion of the Snohvit project. This new consent entails in part that Statoil can introduce hydrocarbons into the subsea facilities* in the project.

*Subsea facilities
Subsea facilities consist of equipment such as Xmas trees, subsea templates and pipelines. This equipment is installed on the seabed to produce hydrocarbons. Multiple wells are connected to manifolds via pipelines. The wellstream is then routed to a process facility offshore or on land.

However, this consent does not mean that production of LNG on Melkoya can be started. The facility must first be commissioned and handed over to operations in accordance with the submitted documentation and plans. The PSA will also conduct an audit prior to start-up, in the first half of June.

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