The Ormen Lange - Langeled Project

Transcription

1 The Ormen Lange - Langeled Project The Scottish Oil Club Edinburgh, 5 th October 2006 Geir Lindholt, Vice-president Gas Infrastructure, Hydro Markets Oil & Energy

2 Hydro at a glance a Fortune 500 company Hydro 2005 Turnover 174 billion NOK = billion Operating income 46 billion NOK = 3.7 billion Investments 41 billion NOK = 3.3 billion Employees Distribution of shares 2005 Norwegian State 43.8% Norway privately owned 16.2% USA 18.6% United Kingdom 8.9% Others 12.5% Date: Page: 2

3 A century of progress what next? Date: Page: 3

4 A century of progress what next? continued progress! Hydro is a Fortune 500 energy and aluminium supplier with: employees worldwide activities in 40 countries 2005 turnover 174 billion NOK Our mission is to strengthen the viability of our customers and the communities we serve Date: Page: 4

5 What will happen when the world runs out of oil? Date: Page: 5

6 What will happen when the world runs out of oil? by then, hopefully no one will care Energy consumption is increasing year by year Climate challenges are mounting Hydro creates useful products from natural resources We have 100 years experience in renewable energy Hywind combines our offshore expertise with wind-power opportunities Date: Page: 6

7 A world leader in oil and energy An integrated oil and energy company Operates close to 1 million barrels a day Strong position on Norwegian Continental Shelf Increased international business operations in more than six countries Date: Page: 7

8 From source to market Explore Design Execute Operate Market Date: Page: 8

9 A large offshore operator HEIMDAL OSEBERG FELTSENTER OSEBERG SØR OSEBERG C OSEBERG ØST GRANE TROLL B TROLL C NJORD BRAGE VALE FRAM VEST TUNE TROLL PILOT STURE NORWAY Hydro operates 1 million boe a day 30 % of Norwegian oil production 15 installations on Norwegian Shelf - 10 platforms, four subsea installations, one terminal Date: Page: 9

10 Oil and gas activities throughout the world Norway Russia Canada Denmark US Gulf of Mexico Nigeria Libya Iran Brazil Angola Current E&P activity Date: Page: 10

11 Our global aluminium business Present on every continent Primary metal production in Europe, Canada and Australia. Investing for repositioning and growth Major supplier of aluminium products for the automotive, packaging, printing and building industries, as well as general engineering Improving performance Date: Page: 11

12 Hydro Polymers, one of Europe s largest PVC manufacturers Total turnover MNOK employees The only PVC producer in Norway and Sweden, one of two producers in the UK A world leader in polymer technology A commercial approach to environmentally and socially friendly solutions A strong focus on future needs Date: Page: 12

13 Ormen Lange and Langeled Date: Page: 13

14 Ormen Lange going further Ormen Lange Ormen Lange will increase the Norwegian gas export by 25%, to a level of approx. 100 BCM/year Ormen Lange makes Norway the 2nd largest gas exporter in the world after Russia Ormen Lange may cover close to 20% of the UK gas demand Ormen Lange/Langeled is building the largest submarine pipeline worldwide Ormen Lange/Langeled have met all milestones so far, and are on schedule to deliver gas from October 1st, 2007 Date: Page: 14

15 Ormen Lange: Challenged by the conditions related to the cold and remote arctic areas: Extremely uneven seabed for subsea- and pipeline design and installation Main production area in an avalanche / slide area Extreme temperatures, minus 1.2 C C at seabed Extreme waves and winds in the Norwegian Sea Strong currents metres water depth High subsea multi phase production Long tie back Longest subsea pipeline export distance Date: Page: 15

16 PDO/ PIO approved April Total field and pipeline investments: NOK 66 bn months so far 12 months to go Date: Page: 16

17 Ormen Lange / Langeled Three sub-projects + drilling and operations Offshore Onshore Langeled July % complete Date: Page: 17

18 The Ormen Lange and Langeled HSE vision The Ormen Lange and Langeled shall be developed, operated and decommissioned while preserving the environment, personnel health and assets The development shall be completed without injuries Date: Page: 18

19 Offshore project July % complete Storegga slide edge -250m Control umbilicals and MEG lines Templates A & B 2x30" multiphase lines -850m Templates C & D Date: Page: 19

20 Seabed profile pipeline route Date: Page: 20

21 Rock installation is ongoing during along the import pipelines routes from outside the coast of Aukra A total of approx. 2,5 Million tonnes Date: Page: 21

22 Pipelay in Bjørnsundet on rock supports Date: Page: 22

23 Ormen Lange Field Location The ultimate challenge for pipelaying and marine operations Pipelines and installations in slide area metres water depth Sub zero temperatures at sea bottom Date: Page: 23

24 Spider dredging completed fall 2005 Date: Page: 24

25 Seabed Intervention: We are digging down the Storegga escarpment to make way for the import pipelines: Date: Page: 25

26 5 m wide and up to 4 m deep trench in 30 deg slope N 1-PLA PRE 3.2 m 1-PLA PRE 4 m Date: Page: 26

27 Excavation successfully completed March 7, 2006 Date: Page: 27

28 Template A installation August 2005 Date: Page: 28

29 Positioning by subsea lines Date: Page: 29

30 Ormen Lange Template Touch Down on 850 m depth: Yellow: Actual position White: Planned position 0.44 m west 0.27 m north Heading 0.35 deg Inclination 0.44 deg Date: Page: 30

31 Date: Page: 31

32 Installation of Umbilicals, 2006 / 2007 (Subsea 7) Umbilical A was installed in May 2005 Umbilical B to be installed spring 2007 Installed infill umbilicals between templates Tied-in both umbilicals to the templates Date: Page: 32

33 Nyhamna 33 km from Nyhamna 550 m water depth Date: Page: 33

34 Meeting of the giants at on August 4, 2006 Date: Page: 34

35 OL Offshore Vessels engaged in 2006 S 7000 Solitaire Seaway Falcon Geosund Normand Cutter Skandi Neptune Nordnes Geofjord West Navigator Island Frontier Tertnes Geobay Edda Freya Far Saga Date: Page: 35

36 Challenge Marine Schedule 2006 Ormen Lange Vessels Date: Page: 36

37 Subsea pipeline tie-ins Ca. 3 km Date: Page: 37

38 Connection tool Clamp Connector Date: Page: 38

39 Future Subsea compression Connection to existing facilities Template A 2 x km to shore 860 meter waterdepth Template B 1150 tons Date: Page: 39 PLET 350 tons

40 Smedvig s West Navigator started drilling Total investment of 2,800 MNOK for the initial 8 big bore gas wells capable of producing 20 percent of the British gas market Date: Page: 40 Produced by Ormen Lange Well Delivery Team (43797_ Hydro Media)

41 The Ormen Lange Onshore Processing Plant July % complete Annual export 22 billion scm of gas BPD condensate Date: Page: 41

42 Nyhamna EPC contracts Aker Kværner Main EPC NOK 7.8 Bn Vetco Aibel Condensate export and MEG NOK 1.1 Bn Date: Page: 42

43 Successful engineering and procurement Date: Page: 43

44 July 24, 2006 Date: Page: 44

45 July 24, 2006 Date: Page: 45

46 Site hotel with 3000 rooms July 24, 2006 Date: Page: 46

47 Langeled July % complete Date: Page: 47

48 Langeled 1200 km pipeline from Nyhamna via Sleipner to Easington UK pipe joints 1 million tonnes of steel Transport of gas in Langeled South planned to start October 2006 Date: Page: 48

49 Langeled will become a part of the Norwegian gas transportation system Nyhamna Terminal 42 dia 250 / 215 barg 626km Capacity 80 MSm 3 /D Existing gas fro Kollsnes (Troll) SSVS & SLR SSVS Tie - & in SLR Tie - in Sleipner SLR 44 dia 156,8 barg 540km Capacity 74 MSm 3 /D Existing export to continent UK Terminal

50 Bredero in Farsund pipes coated Coated pipes shipped to intermediate storage at Hartlepool, Ågotnes, Måløy and Vestbase Date: Page: 50

51 Ormen Lange / Langeled Intermediate storage Måløy pipe joints, tonnes Date: Page: 51

52 Acergy Piper laying the 42 Langeled Export Pipeline betwen Norway and UK: Started pipelaying from Sleipner in April 2005.and per mid September 2006 only about 20 km of the total 1200 km are remaining Date: Page: 52

53 Langeled north - Acergy Piper at kp 33 March Date: Page: 53

54 Langeled North 42 Sleipner Acergy Piper Spec.brake - KP 386,5 Start-up Solitaire 80km KP 625 Acergy Piper 158 KP 386,5 Acergy Piper (354km) KP km 500 km 400 km 300 km 200 km 100 km Wt = 30mm Wt = 34mm Date: Page: 54

55 Receiving Facilities in the UK October 2005 Start-up October 2006 Centrica Langeled Date: Page: 55

56 Easington May 2006 Date: Page: 56

57 We are on schedule and within budget! Well defined concept at time of decision Successful contract strategy and selection of contractors Active stakeholder management Date: Page: 57

58 Gas pipelines Source: Norwegian Petroleum Directorate Date: Page: 58

59 Historic and expected Norwegian gas exports Bill. scm gas Source: Norwegian Petroleum Directorate Date: Page: 59

60 Norwegian natural gas exports 2005 Total 82.5 bill.scm Austria 1,0 % Czech Republic 3,3 % Italy 7,2 % Denmark 0,4 % Switzerland 0,1 % Belgium 8,0 % France 19,3 % Germany 29,9 % The Netherlands 8,6 % UK 18,8 % Spain 2,9 % Poland 0,6 % Source: Norwegian Petroleum Directorate Date: Page: 60

61 Waiting for the Ormen Lange gas Date: Page: 61

62 Date: Page: 62