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Statoil Starts Wet Gas Compression at North Sea Gullfaks Field

Statoil ASASTO , along with its partners, Petoro and OMV, has initiated the first wet gas compression in the world. The revolutionary process is being used on the seabed of the North Sea Gullfaks field.

The unique technology is expected to boost recovery by 22 million barrels of oil equivalent. It is also likely to increase plateau production from the Gullfaks South Brent reservoir by about two years.

Statoil is the first company to use subsea gas compression, which is considered to be the next-generation oil and gas recovery process. Notably, the ├ůsgard subsea gas compression was also started by Statoil in mid-September. Both projects are global pioneers and are two different technologies for continuing production when the reservoir pressure drops after a certain time.

The impact of subsea compression is stronger than conventional platform-based compressions. Another advantage of this technique is that the platform avoids increased weight and the additional space that is usually required on the platform for a compression module. Subsea compression is a vital technological progress toward further development of a subsea factory.

The application of this solution, in combination with other measures, is expected to improve the recovery rate from the Gullfaks South Brent reservoir to 74% from 62%. Additionally, the existing pipelines may be used to tie in other subsea wells to the wet gas compressor. A station for the new tie-ins has already been prepared.

The wet gas compressor is simpler, cost effective and time saving as it does not require gas and liquid separation before compression. Therefore, smaller modules and an uncomplicated structure on the seabed are the only requirements.

The system comprises a 420-ton protective structure, a compressor station with 2 five-megawatt compressors totaling 650 tons, and all equipment required for power supply and system control on the platform.

The subsea compressor will become operational following the extensive preparations that have been made on Gullfaks C. This consisted of alterations and preparation of areas as well as installation of equipment.

Statoil is the operator of the Gullfaks license with 51% interest. Other partners include Petoro and OMV holding 30% and 19%, respectively.

Statoil carries a Zacks Rank #5 (Strong Sell). Some better-ranked stocks from the same space are Natural Gas Services Group Inc. NGS , Matrix Service Company MTRX and ReneSola Ltd SOL . All these stocks sport a Zacks Rank #1 (Strong Buy).

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STATOIL ASA-ADR (STO): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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