Skarv and Idun Fields, North Sea Northern, Norway

The Skarv and Idun fields are located between the Norne field (35km to the north) and Heidrun (45km to the south) in Production Licenses PL212, PL262, PL159. Water depths lie between 350m and 450m. In 2007, BP submitted a plan for the joint development plan for the fields with the aim of start-up in the third quarter of 2011.

The fields contain hydrocarbons at three reservoir levels and the total recoverable resource basis is estimated to be 16.8 million cubic metres of oil and condensate and 48.3 billion cubic metres of rich gas.

The Skarv oil and gas field was discovered in 1998. Skarv (proven in 1998) and Snadd are located in the licenses (sub-blocks 6507/5, 6507/6, 6507/3, 6507/2).

80% of the recoverable resources on Skarv are gas and the remaining 20% liquids. The field is operated by BP (30%) on behalf of Statoil (30%), Norske Shell (25%) and ExxonMobil (15%).

Idun was discovered in 1999 and is primarily a gas field. The field is located in PL 159 (blocks 6507/3-3). The licensees are Statoil (50%), Norske Shell (40%) and Norsk Hydro (10%).

The unitised equity is BP (23.8350%), Statoil (34.1100%), Shell (28.0825%), ExxonMobil (11.9175%) and Hydro (2.0550%)

FPSO

The fields will be developed using a large production vessel (FPSO), to produce from the subsea wells, and an 80km gas export pipeline connecting to Åsgard Transport System, at a total cost of around NKr30bn. The fields will be developed using 15 to 16 subsea wells.

BP awarded the $265m EPC (Engineering, Procurement and Construction) contract for the Subsea Production System (SPS) to VetcoGray. The four-year contract includes the detailed design, project management and supply of equipment. The main work will take place in Haugesund and Billingstad in Norway, Aberdeen and Nailsea in the UK.

FLOWLINE FABRICATION AND INSTALLATION

Subsea 7 was awarded the $125m contract. The company will engineer, fabricate and install 42km of single flowlines. These consist of 35km of 12in and 10in-diameter clad production flowlines and 7km of 10in-diameter carbon steel gas injection flowlines. A Direct Electrical Heating (DEH) cable will be attached to the 13km Idun flowline which is a part of the 35km production flowline.

Flowline fabrication will be carried out at Subsea 7's new pipeline fabrication facility at Vigra, on the west coast of Norway which is currently being constructed. It will commence pipeline fabrication in early 2010. Offshore operations are due to take place in 2010 and will use Subsea 7's pipelay vessel Skandi Navica.

Aker Kvaerner won the NKr100m front-end design job for the new floating production facility as well as the overall system design for the field and preparation for procurement and project management of the total field development.

BP awarded the $400m contract for fabrication of the Skarv FPSO hull to Samsung Heavy Industries in South Korea. The FPSO has a length of 292m, breadth of 50.6m and is 29m deep. The hull weight, including living quarters, which accommodate 100 people in single cabins, is 40,600t. The hull will be delivered in January 2010.

QUAYSIDE SYSTEMS

Samsung in Goeje Island, South Korea, also won the $350m contract for the FPSO Topside Fabrication and Installation (TFI) – including around 16,000t of topsides systems. The contract covers fabrication of six main modules each weighing approximately 2,500t and the flaretower which will be mounted on the FPSO in a yard on completion of the passage from the TFI yard.

On completion of fabrication and quayside commissioning activities the modules will be installed on the Skarv FPSO deck. In addition to the work associated with mounting the flare in an onshore yard, the vessel's five thrusters will also be fitted, after undergoing a trial fit and removal for the voyage.

The construction of the topsides modules start with first steel cutting in December 2008, and the complete FPSO will leave South Korea by the end of 2010.