Project Profile
Value: US$3.7 Billion
Location: Norwegian sector of the North Sea, Blocks 15/5 and 15/6, Norway
Start-up Year: 2017
Reserves: 130 - 170 MMboe
Water Depth: 120 metres
The Gina Krog field development is a gas, condensate and oil field which is located in the Norwegian central part of the North Sea, around 30 kilometres northwest of Sleipner. The discovery will be developed to the Sleipner field. Gina Krog (previously named the Dagny), was originally a minor gas discovery north of Sleipner, has been considered for development on a number of occasions since its discovery in 1974. When oil and gas were proven in the nearby structure Gina Krog Øst (previously Dagny) in 2007, the Gina Krog landscape was revisited for review. Further delineation during the period 2008 to 2011 determined a contact between Gina Krog and Gina Krog Øst and confirmed large volumes of oil under the entire structure. Situated in a water depth of 390 feet (119 metres) in the Norwegian sector of the North Sea is the Dagny field, located on Block 15/5. Statoil is operator of the Gina Krog field PL048 (58.7%) and additional license partners are Total E&P Norge (30.0%) and Det Norske (3.3%). ExxonMobil is the operator of PL029, with a 100% interest. PGNiG Upstream International also has a smaller interest of 8%. Discovered on August 25, 2008, the well confirmed an oil column of some 328 feet (100 metres) in the Hugin formation. Two months later when a sidetrack well was drilled, the size of the find was upgraded to contain between 130 and 170 MMboe. The purpose of the sidetrack drilling was to delineate the discovery in order to determine the oil/water contact.
The appraisal wells on the Dagny structure confirmed this prospect and another, Ermintrude, have identical pressures and are located in the same structure. The field has resources in the range of 35 MMcm/d, and the recoverable oil resources can be increased substantially assuming that gas injection is selected in the development solution, according to the Norwegian Petroleum Directorate. In June 2012, Statoil and partners have selected a fixed platform development concept for the Dagny oil and gas field, while the Eirin gas field is to be developed with a subsea solution. Gas from Dagny will be exported through a tie-back to the infrastructure on Sleipner East, while offshore loading into shuttle tankers is proposed for the oil. The seabed production installation on Eirin will be tied-back to the planned Dagny platform. The chosen solution for Dagny and Eirin will now be secured, with the award of FEED contracts. Plans call for an investment decision to be taken in 2013, with production starting in 2016. In October 2015, Tellus Petroleum AS (subsidiary of Sequa Petroleum N.V.) entered into an agreement with Total E&P Norge AS to purchase interests of 30% in PL 029C, 14.78% in PL 029C and 21.8% in PL 048, representing 15% in the Gina Krog unit.
Operators:
Statoil: Operator with 58.7% (100% interest in PL303, 78.2% interest in PL048 and 50% interest in PL029B)
KUFPEC: 30% interest (21.8% interest in PL048, 100% interest in PL029C and 30% interest in PL029B)
Aker BP: 3.3% interest (20% interest in PL029B)
PGNiG Upstream International: 8% interest
Contractors:
Daewoo Shipbuilding Marine and Engineering (DSME): Assigned to design and construct the topsides for the Dagny platform. The award has taken place in wide international competition among pre-qualified suppliers. The contract comprises detailed design, procurement, engineering services, construction, hook-up and commissioning. The assignment will begin immediately and will be completed in the first quarter of 2017. (February, 2013)
ABB: internal and external telecommunication systems
Allseas: Pipelaying contract
Aker Solutions: A four-year frame agreement from Statoil for delivering wireline tractor services
Baker Hughes: Provide integrated drilling services
ClampOn: Supply 130 topside leak monitors
Emerson Process Management: Supply of pressure and temperature measuring equipment
Enhanced Drilling: has completed a pilot project with Statoil regarding use of the EC-Drill as a managed-pressure-drilling system for floating rigs
Floatel International: Provision of a semi-submersible accommodation and construction support vessel Floatel Endurance contract. (2015)
Heerema Fabrication Group: EPC contract with Statoil to build the jacket for the Dagny field - completed jacket construction in June 2015, and the jacket was lowered into the sea in July 2015.
Heerema offshoot HFG Engineering: FEED contract for the jacket and construction of the unit
Maersk: Drilling contract
Ocean Installer: Engineering, procurement, construction, installation (EPCI) contract for subsea installations and tie-in operations
Teekay Offshore Partners: A floating, storage & offloading contract in order to convert a shuttle tanker into an FSO
Fabricom: Contract to perform maintenance and modification on the Gina Krog platform
Claxton: Contract with Statoil to supply conductor and internal centralizers to a minimum of 14 wells on the Gina Krog development, offshore Norway. The contract was finalised in December 2014, and first delivery is scheduled for March 2015. Claxton is responsible for the design, fabrication, testing and installation of the units. Conductor centralizers form the interface between the platform jacket and well conductor, assuring vital integrity over the working life of the conductor.
Sembawang Shipyard (Sembcorp Marine’s wholly-owned subsidiary): FSO conversion contract worth US$59 million for the Gina Krog Field. Sembawang Shipyard will work closely with Teekay to convert the shuttle tanker Randgrid into an FSO. Major conversion works include installation of a new helideck, hull reinforcements, refurbishment of submersible turret loading (STL) compartment, installation of offshore crane, loading hose reel package, azimuth thruster and replacement of two generators, as well as associated piping and additional cabling works. The yard will also fabricate and install new living quarter decks on the vessel. The vessel is expected to arrive at Sembawang Shipyard in June 2015, with completion in 11 months.
ALTUS Intervention (a subsidiary of Qinterra AS): The 10-year long agreement involves provision of mechanical wireline and fishing services, as well as cased hole logging and tractor conveyance as optional services. (July, 2016)
First Subsea: supplied a relatchable bend stiffener connector to NOV Completion & Production Solutions for a flexible production riser. (July, 2016)
Bilfinger: Insulation, scaffolding and surface treatment (ISO) service contract (December, 2017)
Sub contractor:
Aker Solutions: Provider of detail engineering and hook-up services for DSME
Apply Leirvik: Provide the living quarters for DSME. (2013)
GE Oil & Gas: Provide Daewoo Shipbuilding & Marine Engineering (DSME) with turbomachinery equipment and services and supply subsea tie-in connection systems for Ocean Installer
Kongsberg Maritime Engineering (KME): to supply an integrated control and safety system (ICSS) and power package for Statoil’s Gina Krog field FSO destined for the Norwegian North Sea
SNC-Lavalin: Perform detailed design of the jacket for HFG Engineering Europe (HFGE)
Wärtsilä: Supply vessel internal electrostatic coalescer (VIEC) systems
DOF Subsea: Contract for installation of the Turret Mooring and Riser system for the Gina Krog FSO by Teekay Shipping Norway AS with the scope of work including installation of 12 suction anchors complete with chain/wires, STL buoy hook-up, and installation of riser system. Estimated contract value for the firm scope is approximately US$25 million, excluding options.