Valhall Injection Platform Ready for New Piling

Five piles have now been cut off above the seafloor and transported to land. This complicated work was conducted without any mishaps. The substructure is now ready for the installation of two extra piggyback sleeves with two new piles. This work will get underway at the beginning of August.

Good, close cooperation between BP and AkerKværner has resulted in this smart solution which went from idea to realization in less than 9 months. The solution has been thoroughly studied and evaluated by both internal and external experts, as well as the relevant authorities. In safety terms, the solution meets all requirements and is at least as good as the original solution. The topsides deck will be placed on the jacket immediately after the piling has been completed. The Saipem 7000 special lifting vessel will carry out this operation. The first injection will get underway from two wells on the wellhead platform in October/November of this year.

Since the original plan for development and operation (PDO) was submitted in the summer of 2000, the project has carried out significant changes in the drilling program, equipping of the wellhead platform and modifications of the injection unit. In addition, the piling problems have resulted in delays and additional costs. The revised total cost for the PDO is now estimated at NOK 7.2 billion, of which NOK 1 billion covers the piling work. Other changes as indicated above amount to NOK 1.7 billion.

The water injection platform will allow Valhall to produce 161 million more barrels of oil and gas, worth about NOK 28 billion at today's oil price. The overall cost increase will be recovered during the first year and a half of production.

The expert groups have been assessing all available data since last autumn. They have not been able to determine a single specific cause of the pile problems. BP and AkerKværner are continuing their good cooperation with primary focus on efficient completion of the project, which is covered under a construction risk insurance policy.