Norwegian energy multinational Equinor has awarded a contract to Nexans Norway to supply 27km of complex umbilicals with power, fibre-optic and hydraulic elements for the Phase III development on the Troll oil and gas field.
Nexans will design, manufacture and supply static umbilicals, connections, terminations, and accessories. These include high voltage power elements, high-pressure hydraulic lines, low-pressure hydraulic lines, a methanol and glycol (MEG) service line for chemical injection, a spare line, and fibre-optic communications.
The subsea production systems will consist of two subsea templates or manifolds, and nine subsea trees. Equinor plans to drill eight production wells in total, tying them back to the Troll A platform. Troll A will link to Template W1 by a 20km umbilical, and Template’s W1 and W2 will be connected by a 7km umbilical.
‘Made in Norway’
Nexans proposed a total ‘made in Norway’ design. The electrical and fibre-optic elements will be manufactured at its facility in Rognan, while its complete umbilical system will be created and tested in Halden.
Asked of the benefits of sourcing elements domestically, Nexans Norway communications manager Trude Larstad told Power Technology: “While the proximity factor is important (our cables being manufactured at Nexans Norway facilities), the primary reason for opting for the ‘made in Norway’ is that Nexans has very high-quality standards. Norwegian suppliers are known for a high level of their subsea competence, technology and experience, which makes it a lot easier for us to control the quality of components used in the manufacturing process.
As the trend towards domestic production continues, with many nations looking to support their own manufacturing industries, Nexans claims its ‘made in Norway’ approach could be beneficial to Norway’s economy in the long run.
Øvrum noted: “The Troll oil and gas field is in a class by itself globally. The plan for development and operation for the next phase of the Troll development submitted today is highly important both to the future value creation for Norwegian society, but also to ensure future gas deliveries to Europe.”
Capital spending for the project is currently estimated at Nkr7.8bn, which should extend production at Troll beyond 2050.
More than half of the Troll field reserves still remain after 20 years of production. Phase III focuses on recovering large amounts of gas resources at the Troll West structure, which is located 330m below sea level, 25km north-west of the Troll A platform.
Equinor technology, projects and drilling executive vice-president Margareth Øvrum said: “The third phase of the Troll development realises 2.2 billion barrels of oil equivalent, it has a break-even of less than $10 per barrel and a carbon intensity of 0.1kg per barrel. This is probably one of the most profitable and robust projects in the company’s history.
Nexans senior executive vice-president for subsea and land systems Vincent Dessale said: “Nexans has established an impressive track record in delivering umbilical projects for the Norwegian continental shelf and we look forward to continuing our long-standing relationship with Equinor by delivering this key contract for Troll Phase 3″.
Equinor senior vice-president for Operations West Gunnar Nakken said: “The Troll operations have generated great value for the whole society. Since it came on stream in 1995 the Troll field has generated an estimated NOK 1,400 billion in revenues, equivalent to NOK 175 million per day on average. In the future, we estimate that Troll will create even greater value.
“Troll will also strengthen Norway’s ability to supply Europe with gas. The gas from Troll will ensure reliable, profitable and carbon-efficient gas supply equivalent to the consumption of 50 million households in Europe for 30 years in the future.”
The company will reportedly deliver the umbilicals by the start of 2020 and then the project can deliver its first gas from Q2-2021.