Project Profile
Value: US$1,288 million
Start-up Year: 2012
Location: Danish Continental Shelf, Denmark
Production: 21,771 boed gross 2010
Reserves: unknown
The South Arne field is located in the Danish part of the North Sea, and is operated by Hess Corporation. Oil production from the field commenced in July 1999 and gas export commenced later in the year. The platform is an integrated production and accommodation platform, where the oil and gas from the South Arne reservoir are separated, processed and exported. The oil is stored in a subsea storage tank and transferred to shuttle tankers via an offshore loading system for onward transport to refineries in North West Europe. The field is developed with a total of 21 production/injection wells that are producing from a low permeability chalk reservoir.
The overall production level in 2010 was influenced by reduced water injection during the drilling of two new production wells, reduced well maintenance activity due to drilling rig interference, and added production from the two new producers completed during November. The new production wells, SA-20 and -21 which are testing the flank potential and the less prolific Ekofisk formation immediately above the main producing horizon, respectively, have shown encouraging potential. In addition to the contribution from the new production wells, the experience gained has given valuable input to the planning of the next major development on South Arne, the Phase III development project.
The South Arne field produced an average of 21,771 boed gross in 2010. For the South Arne Phase III development project, the Field Development Plan (FDP) was approved by the Danish authorities in September. The FDP comprises drilling and completion of 11 new producers and injectors as well as installation of two new unmanned wellhead platforms and interfiled pipelines controlled from the Central South Arne processing and export platform. Total investments are estimated to be in the range of NOK 6 billion spread over the next few years. The project was sanctioned by the partnership in November and the project is now in the execution phase with major contracts being awarded and with planning, design and procurement initiated. First oil was on January 2013. Hess plans to drill four production wells and begin one water-injection well in the South Arne field offshore Denmark, where the company holds the operatorship and 62% interest. The 2015 further investment plan of the US$1-billion Phase III redevelopment project will help to extend the productive life from the field.
Operators:
Hess Corporation: Operator with 61.5% interest
DONG Energy: 34.4% interest
Noreco (Norwegian Energy Company): 2.5% interest
Contractors:
Granherne (KBR): FEED contract
Heerema Marine Contractors: Construction of the platforms
Ramboll: Modification and tie-in work
Semco Marine AS: Tie-in work
Dragados Offshore: EPC - Wellhead platforms
Subsea 7 Inc.: EPC – Pipelines
Red Spider: Supply multiple eREDs for deployment
Ramboll Oil & Gas/Semco Maritime joint venture: Contract to provide offshore and onshore support services for Hess’ platforms in the Danish North Sea covering engineering, procurement, quality assurance, offshore manpower, and full responsibility for construction projects at the South Arne field platforms
READ Cased Hole: Cased hole logging contract. The framework contract appoints READ as the preferred provider on a four-year basis with a one-year extension option available. READ aims to deliver quantitative assessment of downhole well performance to help maximize efficiency and enable cost-effective recovery for those newly drilled wells in a field that’s been in production since 1999. READ uses data analysis to increase effective recovery. As part of the Phase III development, Hess engineers introduced a lower completion technology, consisting of up to 15 discrete production zones and ball-drop-activated sliding sleeves. It resulted in significant efficiency improvements during stimulation operations as well as accelerating early production. This completion system, combined with carefully executed operational programs, enabled customized acid fracturing of each zone delivered simultaneously with drilling and construction operations. (November 2015)
DNV GL: To provide asset integrity inspection management including Risked Based Inspection (RBI) services and Non-Destructive Testing (NDT) inspection services. The inspection will address the process systems using pressure-retaining equipment and piping, the concrete gravity base and tower, the steel structure, both topsides and subsea, and oil export pipeline and offloading buoy. (June, 2016)
Sub Contractor:
FoundOcean: Grouting for two new platforms
KBR: Detailed engineering for Dragados Offshore