Shell Sanctions Ormen Lange Subsea Gas Project
Supermajor Shell has reached a Final Investment Decision (FID) for its Ormen Lange wet gas subsea compression project offshore Norway and submitted the development plan for it to the Ministry of Petroleum and Energy.
The plan for development and operation (PDO) for the Ormen Lange field to the Minister of Petroleum and Energy Tina Bru on Monday 20 September 2021.
“The gas field Ormen Lange is a Norwegian success story. The field has been driven by innovation, technology development, and many "best-in-class" labels. This also applies to the development of phase three. This is a good example of what we want on the Norwegian shelf in the future. A project that provides increased recovery from fields in operation, at the same time as developing, qualifying, and using new technology,” Bru said.
The subsea systems will be manufactured and installed by the supplier company OneSubsea. Norwegian content in the project is estimated by the operator at 78 percent.
Phase 3 of the Ormen Lange project will increase the recovery rate from the field from 75 percent to 85 percent by installing compression capacity on the seabed. Shell claimed that the project was designed to unlock an additional 1,060-1,765 billion cubic feet of natural gas. The project will add more than $4.6 billion extra income to Norway.
The goal is to place two compressor stations on the field 75 miles from land and at a depth of about 3,000 feet. The plant will be operated from land and supplied with power from the grid.
This is the first underwater compression system to be developed without any support from an offshore platform. The solution is both developed in and will be delivered from Norway with new technology based on Norwegian innovations for a global market.
The gas from Ormen Lange goes in pipelines to the processing plant at Nyhamna in Aukra municipality, where it is processed for further export in Langeled via Sleipner to Easington in the UK.
“Ormen Lange ranks among the lowest carbon intensity fields in Norway, being powered with hydro-generated electricity from the national grid and processed in a closed system at the Nyhamna gas plant,” Managing Director at A / S Norske Shell Marianne Olsnes stated.
The field was proven in 1997 and started production in 2007. Deepwater and the conditions on the seabed made development difficult, and the development of new technology was necessary.
The field has been developed in several phases. After phase three, a fourth phase is planned for drilling and production from several wells. The operator of the project is Shell while Petoro, Equinor, Ineos, and Vår Energi are partners in the project.
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