Vår Energi Kicks Off Life Extension Project in the North Sea

June 16, 2020 | Oil & Gas | Energy Facts Staff Writer | 3min

Jotun FPSO has been producing oil from the Jotun field in the North Sea since 1999. The vessel is now being taken ashore for upgrading at Rosenberg Worley in Stavanger. The event kicks off the life extension of the Balder Area in the North Sea.

“I am happy and very proud to have Jotun back in Stavanger. Happy because this marks the start of Vår Energi’s most important project going forward. Proud because, we secure jobs for the local supplier industry at a very challenging time” says Vår Energi CEO, Kristin F. Kragseth.

The Covid-19 pandemic and low oil prices created great uncertainty for the project, and an assessment was needed to get an overview of potential consequences. At the same time, compensatory measures were taken to reduce the effects of Covid-19 and maintain the progress plan.

The project review shows that Covid-19 pandemic has resulted in a delay of part deliveries, but that the overall plan is still valid. With the Norwegian Parliament’s decision on measures for the industry and the other compensatory measures, Vår Energi is confident that the project can be carried out, still with production start in the second half of 2022.

North Sea investment
The upgrade of the Jotun FPSO is part of Vår Energi’s investment in increased oil recovery from the Balder field in the North Sea. The Balder Future project will extend the life of the field (PL 001) by 2045, giving Norway’s oldest license a lifetime of 80 years.

In addition to the upgrade of the Jotun FPSO, 13 new production wells and one water injection well will be drilled on the field. The project aims to extract another 136 million barrels of oil equivalent (Mboe).

“We are proud to be continuing the PL 001 legacy, and by utilizing existing infrastructure we contribute to good resource management. There is still uncertainty about how the Covid 19 pandemic will affect the project, but the goal is to start production in the second half of 2022” says Kragseth.

The project represents an investment of NOK 19.6 billion. It will employ 30,000 full-time equivalents during the project and operational period (2018-45), peaking at 4 500 full-time equivalents during 2020-22.

Returning home
Jotun was built at the Kværner Rosenberg shipyard in Finland, and shipped to Rosenberg in Stavanger for completion in the late 90’s. Just over 20 years later, the vessel is back in town.

Jotun is expected to enter Åmøyfjorden on Monday June 15. Here, the vessel will undergo preparation works for two weeks before the last tow into the Rosenberg Worley in Stavanger.

The upgrade of the Jotun FPSO includes overhaul of the turret, pipes, process equipment, hulls, marine systems, living quarters, control and security systems. Staffing at Rosenberg is estimated at 1 200 people at most.

The “new” Jotun FPSO is scheduled to be re-installed between Balder FPSO and the Ringhorne platform during the summer of 2022.

Local suppliers
In addition to Rosenberg Worley, Stavanger based Baker Hughes and Ocean Installer, have been selected to carry out engineering, procurement, construction and installation of new subsea systems (SPS), umbilicals, risers and transport pipes for the Jotun FPSO. The proportion of Norwegian suppliers in the project is 70%.