Valhall Re-Development Power from Shore Contracts

BP on behalf of the Valhall licensees has awarded two key contracts for facilities associated with supplying Power from Shore to the Valhall field, as part of the Valhall Re-Development Project: Nexans Norway A/S for the Voltage Direct Current (HVDC) and Fiber Optic Cables from Lista to the Valhall Field ABB A/S for the HVDC converters including the onshore station at Lista.

Both these contracts are initially for the Front End Engineering Design (FEED) with options for the Engineering, Procurement, Construction and Installation (EPCI) of facilities to be exercised following final project approvals.

Nexans will perform their work from their facilities in Norway at Oslo, Halden and Rognan. Initially, the ABB engineering work will be performed at their facilities in Ludvika, Sweden. The project management during the construction period will be performed in Norway following final project approvals.

Power from shore is a unique and challenging part of the Valhall Re-Development project. The system will replace offshore gas turbines and deliver 78 megawatt power for the running of the field. This will make Valhall one of the most environmental friendly fields offshore Norway. This will result in a safer and more efficient source of power supply.

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 mbpd (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.