APL's STP System Selected by Marathon for Alvheim FPSO

Advanced Production and Loading AS (APL) has signed a letter of intent with Marathon Petroleum Norge AS, a wholly owned subsidiary of Marathon Oil Corporation for a Submerged Turret Production (STP) system as turret mooring system for the proposed Alvheim FPSO.

APL will supply an STP system for permanent mooring of the MST Odin as FPSO for the field lifetime of 25 years. The letter of intent is subject to execution of a definitive contract between APL and Marathon, and Norwegian Government approval of the Alvheim plan for development and operation recently submitted by Marathon and its partners.

The Alvheim field is located on the Norwegian Continental Shelf of the harsh North Sea at a waterdepth of 125meters. The STP system will have 14 slots through the turret to accommodate risers and umbilicals for the initial subsea wells and for planned expansions.

The Odin FPSO will after conversion store 560 000 barrels barrels of oil and will be moored in a passive mode.

The mooring system is designed to withstand the 100 year storm with 14.6m significant wave height.

APL has previously delivered four STP systems, of which two are mooring sister vessels to the Odin, one for the Statoil operated Lufeng field the South China Sea and one for the Shell operated Pierce field in the UK North Sea. The two other STP systems in operation are the CNOOC operated WenChang and the Devon Energy operated PanYu FPSOs in the South China Sea.

APL have since the first Submerged Turret Loading (STL) system was installed in 1993, been contracted for 27 turret mooring systems world wide for FPSOs, FSOs, shuttle tankers and standard trading tankers.

This contract will be the largest in APL's history with a contract value in the range of 400 Million NOK.