Valemon Field, Norway

The Valemon field is located between production licence 050 and 193 in the Norwegian Sea. This gas and condensate field lies at a water depth of 135m approximately 160km west of Bergen.

Statoil is the operator of the field with a 64.275% interest. Other licensees include Petoro (30%), Enterprise Oil (3.225%) and Total (2.5%). Their interests in the field are subject to government approval of the Valemon unitisation agreement. The partners are planning to invest Nkr20bn in developing the field.

Statoil submitted a plan for the development of the Valemon field in October 2010 and Government approval is expected in June 2011. First production from the field is planned for 2014 and Valemon is expected to produce gas at a peak rate of three billion cubic metres per year.

Discovery of the Valemon field

The Valemon field was discovered in 1985. Statoil confirmed the presence of hydrocarbons with the drilling of the 34 11-5 S exploration well in June 2006.

Drilling of the well was carried out from the Kvitebjørn platform to a depth of 4,370m under the sea. The 7,380m -deep well was the longest high pressure / high temperature (HPHT) well ever to be drilled by Statoil.

Geology and reserves

Hydrocarbons present in the Valemon field are of the Middle Jurassic age and is estimated to contain 206 million barrels of oil equivalent.

Recoverable reserves are estimated at 26bn m³ of gas and 31m barrels of condensate. The reserves make Valemon one of the biggest undeveloped gas fields in the North Sea.

Valemon field development

In May 2010, the Valemon field was placed on fast-track development enabling production to commence two years ahead of schedule. The partners had planned to carry out further development work on the field; however, these were scrapped.

The field is to be developed using a fixed steel platform. Eleven production wells and one injection well will be drilled from the unstaffed platform.

Platform

The Valemon platform will consist of a steel jacket and feature separation facilities for gas, condensate and water. The steel jacket of the platform will be 157m tall and weigh 9,200t.

The jacket will be installed at a water depth of 135m and have a footprint of 45m by 45m. Its top will measure 26m by 30m. The platform will include an eight-storey living quarters building featuring a helideck. The building will accommodate single bed cabins, a medical facility, a control room and other facilities.

Production

Statoil has envisaged a basic separation and export strategy for the field. The hydrocarbons produced will be separated at the Valemon platform into rich gas and condensate.

Since the Valemon field is located close to the Kvitebjørn and Gullfaks South fields, their existing infrastructure will be used to produce the Valemon field.

Export

Gas produced at the Valemon field will be transported by a new 22in pipeline to the existing 22in Huldra pipeline. The pipeline will carry the gas to the Heimdal platform from where it is exported to the UK and the European markets.

Natural gas liquids (NGL) and condensate produced at the field will be sent through a pipeline to the Kvitebjorn platform. The condensate will be stabilised and sent to the 203,000bpd Mongstad refinery near Bergen.

Contracts for the Valemon field

In 2008, Alliance Engineering completed the feasibility study for the fixed jacket platform for the Valemon field. A unit of the John Wood Group, Alliance carried out pre-FEED for the jacket and the topsides of the platform.

In October 2010, Heerema Vlissingen, a unit of the Heerema Fabrication Group, was awarded a contract for the construction and installation of the steel jacket for the Valemon platform. Heerema is expected to deliver the jacket in the third quarter of 2012.

The contract follows the FEED study carried out by another unit of Heerema Fabrication Group, HFG Engineering Europe.

Statoil contracted Samsung Heavy Industries in May 2011 to construct the topsides for the Valemon platform. The EPC contract valued at Nkr2.3bn includes the topsides and living quarters.

Samsung signed a subcontract with Grenland Group to carry out detailed engineering and construction of the topsides.

IKM Ocean Design won the contract to design the new pipeline.

In June 2011, Hertel Marine was subcontracted to design and construct the Valemon field's living quarters. Construction work began in June and is expected to be completed by April 2013.