BP Awards First Valhall Redevelopment Contract

BP on behalf of the Valhall licensees has awarded the Front End Engineering and Design Contract (FEED) to Wood Group and its sister companies Mustang Engineering and JP Kenny. Wood Group together with Stavanger-based Fabricom AS will jointly carry out the FEED work for the project.

The contract initially focuses on design, procurement and project services. It has the option to extend for full project duration to include construction management assistance.

Wood Group is a global player with significant experience in Gulf of Mexico, Alaska, West Africa and the UKCS. The Valhall FEED work will be carried out in Norway and Houston.

Five companies were pre-qualified for the work with Fabricom and Wood Group electing to join forces. All companies were subject to a comprehensive evaluation process.

BP places great emphasis on a project's performance in the global market and the ability to deliver distinctive world class projects. Delivering capital efficient projects, safely, on schedule, within budget and with excellent operability is the ultimate goal for the Valhall Partners.

"We are building a platform to take Valhall through to 2050. The choices we make today and in the months ahead are fundamental for delivering a field center that will be safe and cost effective for the next 40 years," says Ewan Drummond Project Director for the Valhall Redevelopment Project.

The project development costs are currently estimated to be around NOK 6.3 billion including the power supplied from shore. The Plan for Development and Operation will be submitted to the authorities in time for approval in 2Q 2006.

The new production and hotel platform is planned to be in operation during 2009 and has the following main features: design life 40 years, bed capacity 150, oil production capacity 150 mbopd, gas handling capacity 175 mmscf/d, total liquid capacity 250 mpd (oil and water), design dry weight: topsides/ process utility 10 000 tons, hotel module 2200 tons, substructure-steel 4000 tons.

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), Amerada 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.