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said. “Cost in? ation must be reversed and quality must be improved.”

Statoil has been working to address costs, with a large focus on standardiza- tion—which has become a buzzword in

North Sea the Norwegian sector, and has been high on the agenda at UTC for a number of years. One project, to create standard- ized umbilicals, comprising electrical and ? ber optic cables, and hydraulic and chemical lines, is already bearing fruit.

Nexans recently delivered the ? rst of four “Statoil Standard” umbilicals, ordered in 2012. The ? rst umbilical will be used at the Oseberg Delta ? eld in the

Norwegian part of the North Sea, and the technical and administrative procedures developed on the Oseberg project will be used to save time, cost, and materi-

Rising subsea development als during its execution and on future costs have led Statoil to set a projects, including the Snøhvit gas ? eld target for 20-30% cost reduction (Barents Sea), and Smørbukk South (Norwegian Sea). on projects. Elaine Maslin reports

Statoil has also been working with sup- from the Underwater Technology pliers to develop a new workover tool,

Conference.

Subsea realities which can work on any Xmas tree, sav- ing millions of NOK, Opedal said. The ? rm is also working on a standard subsea

The conference auditorium during cutting back, and new technology has ubsea – facing new realities” catalog for subsea systems, which will be

UTC in Bergen. Photos from UTC. “ been one of the victims. Earlier this year, was the slogan for this year’s made available to all other operators on

S

Underwater Technology Shell and its partners on the Ormen

Statoil. It is 50% of our equity produc- (UTC) tion. We are the second largest subsea

Conference in Norway. Lange ? eld announced they were shelv- The new realities discussed at the ing, at least for now, plans for subsea operator worldwide with more than 520 event, held in Bergen compression on the subsea wells and a signi? cant yearly during mid-June, were development, after subsea spend,” Anders Opedal, senior vice often sobering. Rising years and millions president project management and control, costs are hurting the spent on a pilot

Statoil, told delegates in the opening ses- industry to the extent project. Shell cited sion at Bergen’s Underwater Technology that Statoil has set a costs and updated

Conference. 20-30% capex reduc- reservoir analysis. “But between 2003 and today, costs for tion target. It also sug- Part-state owned subsea projects have in general doubled,” gested using minimal Statoil is feeling the he said. “Costs on subsea production sys- facilities platforms pain. Subsea pro- tems have tripled over the last 10 years,” with dry trees as an duction is a large he said, adding that market predictions alternative to full sub- part of the ? rm’s suggest costs will continue increasing, sea developments. business. at up to 5% a year. “We think this is not

Manufacturers are Statoil intro- sustainable. We need to turn it around. tempering their focus duced its subsea With increasing costs, you would expect on future technology factory concept in quality has increased. That is normal in breakthroughs, such 2012, with an aim other industries. I’m afraid to say, we

Anders Opedal, senior vice president as using HVDC for long to have a complete have not seen this, at least not in full project management and control, Statoil.

distance step-outs, and subsea factory by effect.”

Opedal gave an example. He said on subsea quali? ed variable speed drives, and 2020. It is looking to take subsea develop- one subsea project, 70% of all engineer- focusing on how existing technology can, ments longer, deeper and colder, opening ing documentation received for review instead, be optimized. areas otherwise impossible to work in. was sent back due to poor quality.

The sober tones should not be a The ? rm’s Åsgard subsea compression

Nearly 20% was sent back at least surprise. Operators have already been project is a step towards this goal. System three times. “During the same project integration testing is underway by Aker

Did you miss UTC? If you did, you Did you miss UTC? If you did, you

NOK700 million was spent rectifying

Solutions and a pilot compressor is run- missed their hi-tech opening video. missed their hi-tech opening video. quality defects in equipment. If you ning at full speed underwater at Statoil’s

But don’t worry—you can see it by scan-But don’t worry—you can see it by scan- extend this across the portfolio we’re

K-Lab. ning this page with the Actable app.

“Subsea is increasingly important to paying millions for quality defects,” he

August 2014 | OE oedigital.com 108 108_OE0814_Geofocus2_UTC.indd 108 7/23/14 7:29 AM