Stork Awarded Major Contract for Groningen Field Upgrade

The Nederlandse Aardolie Maatschappij B.V. (NAM) has awarded a major follow-up order to Stork GLT. This order is for the further renovation of the Groningen gas field, including the installation of compressors. The order represents a value of more than EUR 800 million. The NAM expects that the project will take a total of 8 years, and will involve approximately 2,500 man-years of work. The maintenance extends over a 25-year period. The overall project involves an investment of EUR 1.95 billion (excluding maintenance).

The implementation of this project has been entrusted to Stork GLT (Stork Groningen Long Term). This consortium consists of Jacobs Engineering Group (design), Stork Industry Services (engineering and maintenance management), Siemens Demag Delaval Turbomachinery (compressors), Siemens (compressor motors) and Yokogawa (instrumentation and automation).

"Our cooperation with the Stork GLT consortium dates back to 1996", said NAM project manager Henk Niezen. "The agreement for the renovation and installation of compressors was signed in 1997. The Tjuchem, Bierum, de Paauwen and Siddeburen clusters have now been renovated, and compressors have been installed at two of these. Work is now also taking place on a further 6 clusters. We are very pleased with work that has been done up to now and the cooperation with the consortium. Projects have been completed on schedule. It is worth noting that 1,000 man-years of work have been carried out up to now without any accidents resulting in absence from work. This project will ensure that the Groningen gas field will continue to play a key role in providing gas supplies for the Netherlands over the coming decades."

The Groningen gas field (Slochteren field) was discovered in 1959 and started production in 1963. Renovation is necessary because the production installations, which have now been in operation for an average of 30 years, are outdated and no longer able to completely meet the future demands. In addition the production of gas over many years - by now around 60% of the gas has been extracted - means that the pressure in the gas field has declined. This makes the installation of compressors necessary to maintain the gas production rates.

The Groningen gas field has 29 clusters (production installations with a total of 296 boreholes). The follow-up contract which has now been signed covers the remaining 18 clusters.