Offshore Field Development Projects
Ormen Lange Ormen
Operator:Shell
Water Depth:850 m / 2,805 ft
Region:Europe - North Sea
Country:Norway
Last Updated:Mar 15, 2011    (view update history)
Project Description
Discovered in 1997, Ormen Lange is Europe's third-largest gas field with estimated recoverable reserves of 14 Tcf (397 Bcm) of natural gas. Located on the Norwegian Continental Shelf, 75 miles (120 kilometers) northwest of Kristiansund, Norway, in the Norwegian Sea, Ormen Lange reaches 25 miles (40 kilometers) by up to 6 miles (10 kilometers). Water depths for the field range from 2,625 to 3,609 feet (800 to 1,100 meters), and hydrocarbons are located another 9,843 feet (3,000 meters) below the surface.

Partners in the field include Petoro with 36.48%, StatoilHydro with 28.91%, Shell with 17.04%, Dong with 10.34% and ExxonMobil with 7.23%. Like its development, Ormen Lange boasts a multiphase operatorship. StatoilHydro served as the field's operator during the first phase ...
Discovered in 1997, Ormen Lange is Europe's third-largest gas field with estimated recoverable reserves of 14 Tcf (397 Bcm) of natural gas. Located on the Norwegian Continental Shelf, 75 miles (120 kilometers) northwest of Kristiansund, Norway, in the Norwegian Sea, Ormen Lange reaches 25 miles (40 kilometers) by up to 6 miles (10 kilometers). Water depths for the field range from 2,625 to 3,609 feet (800 to 1,100 meters), and hydrocarbons are located another 9,843 feet (3,000 meters) below the surface.

Partners in the field include Petoro with 36.48%, StatoilHydro with 28.91%, Shell with 17.04%, Dong with 10.34% and ExxonMobil with 7.23%. Like its development, Ormen Lange boasts a multiphase operatorship. StatoilHydro served as the field's operator during the first phase of development from 1999 through production start-up in 2007. Shell took over operatorship for the production phase of the field, including the second phase of development.

Overcoming Challenges

There were a number of challenges that had to be overcome to bring natural gas from Ormen Lange to market. First of all, the field is in environmentally unfriendly waters. Both temperatures and strong currents sought to stop field development in its tracks. Water temperatures on the seafloor stay below freezing, and especially strong currents in the area threaten field facilities. Additionally, a mountainously uneven sea floor made for difficult subsea development.

Despite these difficulties, designers devised a multiphase completely subsea field development plan, including the world's longest subsea pipeline. Submitted to Norwegian authorities on Dec. 4, 2003, the field development plan was approved on April 2, 2004.

Field Development: Phase I

At an estimated cost of US $8 billion (NOK 50 billion), the first phase of development included two 1,268-ton (1,150-tonne) subsea templates, as well as pipelines to shore and an onshore gas processing plant.

Each subsea template holds slots for eight wells, which are hooked up to the templates via a subsea manifold. FMC was awarded the US $160 million (NOK 1 billion) contract to engineer, procure, fabricate and test the subsea production system, which consisted of the two subsea templates with manifolds, eight xmas trees, control systems, an intervention system, tie-in tools, end terminations and Tee's for the pipelines. The contract also included options for additional xmas trees and control systems.

Measuring 144 feet (44 meters) long by 108 feet (33 meters) wide and 49 feet (15 meters) wide, the subsea templates were installed by Hreema's Thialf crane barge using sound signals produced by subsea acoustic transmitters. Positioned 2.2 miles (3.6 kilometers) away from each other, the subsea templates are in waters measuring 2,789 feet (850 meters).

Additionally, a 386-ton (350-tonne) pipeline connection box was installed 164 feet (50 meters) away from the templates. Gas, condensate and water produced from the templates are transported through two 75-mile (120-kilometer), 30-inch-diameter multiphase flowlines up the Eggkanten embankment to the gas plant Nyhamna onshore the western coast of Norway. Saipem was awarded the US $105 million (NOK 660 million) pipeline installation contract, which included tie-in operations.

After installation of the subsea equipment, development drilling for the first phase of development was performed by the West Navigator drillship. The largest deepwater wells in the world at the time, Smedvig completed the US $167 million (NOK 1.17 billion) drilling contract over a two-year period.

Innovative Solutions

To overcome icy water temperatures on the seafloor, Vetco Aibel was awarded the US $96 million (NOK 600 million) contract to engineer, procure and build a Monoethylen-Glycol (MEG) regeneration system, which included a tank farm. MEG is used as anti-freeze to prevent ice formations and plugs in the subsea production facility and pipelines.

To counteract the strong currents in the deepwater of the Norwegian Sea, Van Oord ACZ was contracted to install 3 million tons (2.8 million tonnes) of rock on the seabed to protect and support pipelines and umbilicals from Ormen Lange to Nyhamna for a consideration of US $112 million (NOK 700 million).

Production

Production from Ormen Lange commenced on October 1, 2007. With daily rates expected to increase over the first couple of years, production rates for the first phase of development is 2.5 Bcf/d (70 MMcm/d) of natural gas and 50,000 barrels of condensate a day. Peak production is predicted for 2010.

Natural gas is transported to market via the Gassco-operated Langeled pipeline, the world's longest subsea transport pipeline, traversing 746 miles (1,200 kilometers to connect Nyhamna in Norway to Easingtown in the UK.

Ensuring Long-Term Production: Phase II

The second phase of development on Ormen Lange includes the fabrication and installation of another two subsea templates. The first of them is under construction, and the fourth will be commissioned when necessary. In total, the four wellhead complexes on Ormen Lange will accommodate up to 24 wells.

Both the Leiv Eiriksson semisub and the West Navigator drillship are employed on Ormen Lange for the second phase of development drilling. West Navigator was used through the summer of 2008 for development wells and to complete and make ready new wells for production. Leiv Eiriksson is drilling the planned monitoring well and several production wells through October 2009.

Total costs for the second phase of development have not been released. Ormen Lange is expected to have a field life of 40 years.

Offshore Compression

Inevitably, as production decreases from Ormen Lange, so too will pressure. Once pressure can no longer drive produced gas to shore for processing, offshore compression will be required. There are two options for supplying offshore compression: a floating deepwater platform or a subsea compressor station.

While an offshore platform is more conventional, it is also more expensive than a subsea compressor.

Two subsea compression pilot programs are being designed for use on the field. Aker Solutions was tapped to engineer, procure and fabricate a full-size subsea compression station pilot, and Vetco Aibel was chosen to engineer, procure and construct a long step-out power supply pilot.

The subsea compressor will be located between the two original subsea templates in 2,789 feet (850 meters) of water. If chosen, the subsea compressor will be an industry first. At a cost of about US $ 401 million (NOK 2.5 billion), the subsea option is about half the cost of the offshore platform option.

Testing of the two subsea compression pilots is expected to commence in 2009, and the best system will be chosen by 2011 with installation slated for 2015. Much of the decision will be based on reservoir properties.
Activities
Status Updates
Grenland Group to Manufacture Equipment for Ormen Lange Project
Type: Contract Award

Mar. 2011 - FMC Technologies has awarded Grenland Group a letter of intent to manufacture equipment to support the Ormen Lange project. The company will manufacture and deliver one 8-slot manifold and one foundation base structure. Deliveries are scheduled to commence in the second quarter of 2011, with final deliveries occurring in the first quarter of 2012. Ormen Lange lies on the Norwegian Continental Shelf in water depths ranging from 2,625 to 3,609 feet (800 to 1,100 meters). Shell operates the field, holding a 17.04% interest; Petoro holds 36.48%; Statoil holds 28.91%; Dong holds 10.34%; and ExxonMobil holds the remaining 7.23% interest.

Shell Drills Duster in Northern Area of Ormen Lange
Type: Status Update

Feb. 2011 - Shell has failed to hit hydrocarbons in appraisal well 6305/4-2 S on the Ormen Lange field. The purpose of the well in Production License 209 was to delineate the northern area of the field. The well did encounter reservoir rocks of variable quality in both the Egga reservoir unit and the Jorsalfare formation, but the well was dry. Data acquisition and sampling were carried out, and the results of the appraisal well will be incorporated into the ongoing evaluation of the field. The well reached a vertical depth of 9,413 feet (2,869 meters) and terminated in the Kyrre formation in the Upper Cretaceous. The West Navigator drillship drilled the well in a water depth of 3,563 feet (1,086 meters). Ormen Lange lies on the Norwegian Continental Shelf in water depths ranging from 2,625 to 3,609 feet (800 to 1,100 meters). Shell operates the field, holding a 17.04% interest; Petoro holds 36.48%; Statoil holds 28.91%; Dong holds 10.34%; and ExxonMobil holds the remaining 7.23% interest.

FMC Technologies to Supply Subsea Equipment for Ormen Lange Development
Type: Subsea Equipment

Dec. 2010 - Shell and FMC Technologies have signed an agreement for the manufacture and distribution of subsea production equipment for the Ormen Lange development project in the North Sea. The company will provide an eight-slot manifold, four pipeline end modules, related control systems and connecting equipment. Deliveries should commence in the second quarter of 2011. Ormen Lange lies on the Norwegian Continental Shelf in water depths ranging from 2,625 to 3,609 feet (800 to 1,100 meters). Shell operates the field, holding a 17.04% interest; Petoro holds 36.48%; Statoil holds 28.91%; Dong holds 10.34%; and ExxonMobil holds the remaining 7.23% interest.

NPD Grants Shell Drilling Permit
Type: Status Update

Nov. 2010 - The Norwegian Petroleum Directorate has granted Norske Shell a drilling permit for well 6305/4-2 S using the West Navigator drillship. The drilling program for well 6305/4-2 S applies to the drilling of an appraisal well in Production License 209 on Ormen Lange. Ormen Lange is situated on the Norwegian Continental Shelf in water depths ranging from 2,625 to 3,609 feet (800 to 1,100 meters). Shell operates the field, holding a 17.04% interest; Petoro holds 36.48%; Statoil holds 28.91%; Dong holds 10.34%; and ExxonMobil holds the remaining 7.23% interest.

Shell Receives Consent to Drill in North Sea
Type: Status Update

Aug. 2010 - Shell was granted consent to perform exploratory drilling on Ormen Lange using the West Navigator drillship. The consent applies to drilling and well activities relating to appraisal well 6305/4-2S. Exploratory drilling should commence in September 2010, and should last for about 70 days. The water depth of the site is 3,563 feet (1,086 meters). Located on the Norwegian Continental Shelf, 75 miles (120 kilometers) northwest of Kristiansund, Norway, in the Norwegian Sea, Ormen Lange reaches 25 miles (40 kilometers) by up to 6 miles (10 kilometers).

Production Resumes on Ormen Lange in North Sea
Type: Status Update

Jan. 2010 - Production from Ormen Lange is back online, according to Dow Jones Newswires. Shell, the operator, halted production at the Ormen Lange field during the weekend because of freezing temperatures in Europe. Production from the field resumed late Monday afternoon and it is slowly increasing to its full capacity. Considered to be Europe's third-largest gas field, Ormen Lange is situated on the Norwegian Continental Shelf in water depths ranging from 2,625 to 3,609 feet (800 to 1,100 meters). Shell operates the field, holding a 17.04% interest; Petoro holds 36.48%; Statoil holds 28.91%; Dong holds 10.34%; and ExxonMobil holds the remaining 7.23% interest.

Weather Leads Shell to Shut-In Ormen Lange Output
Type: Status Update

Jan. 2010 - Production was shut-in from the Ormen Lange gas field over the weekend due to adverse weather, and it is unclear when production will resume. Ormen Lange is situated in water depths ranging from 2,625 to 3,609 feet (800 to 1,100 meters) on Blocks 6305/4, 6305/5, 6305/7 and 6305/8 on the Norwegian Continental Shelf. Shell operates the field and holds a 17.04% interest; Petoro holds 36.48%; Statoil holds 28.91%; Dong holds 10.34%; and ExxonMobil holds the remaining 7.23% interest.

Shell to Pump Up Ormen Lange's Output with 4 New Wells
Type: Status Update

Oct. 2009 - Shell confirmed that its Norwegian gas field Ormen Lange is on track to reach peak capacity of 70 million cubic meters a day by the end of the year. "The production increase will be the result of four new wells that will come onstream in addition to the six existing wells," said spokeswoman Lillian Aasheim. She was unable to comment on the flow rate of each well or the precise timing of the ramp up of the new wells but noted 70 Mcm/d is the design capacity for the field's onshore processing facilities at Nyhamna.

Shell Gets Go-Ahead to Use West Navigator on Ormen Lange
Type: Development Activity

Sep. 2009 - Shell was granted consent to use Seadrill's West Navigator drillship for drilling and well operations in connection with the development of the southern part of Ormen Lange. West Navigator has drilled production wells in the northern part of the field for the past 3.5 years and is currently concluding this work.

Ormen Lange's Gas Output Affected by Planned Maintenance
Type: Status Update

Sep. 2009 - Shell stated that its ongoing maintenance at Ormen Lange, is affecting output, but did not clarify how much production is currently off stream or when the field's output will return to normal rates, Dow Jones reports. Located on the Norwegian Continental Shelf in water depths ranging from 2,625 to 3,609 feet (800 to 1,100 meters), Ormen Lange has estimated recoverable reserves of 14 Tcf (397 Bcm) of natural gas.

Norske Shell Secures Permit for Ormen Lange Appraisal
Type: Appraisal Operations

Aug. 2009 - The NPD granted Shell a drilling permit for well bore 6305/5-3 S, cf. Section 8 of the Resource Management Regulations. The drilling program for well bore 6305/5-3 S relates to the drilling of an appraisal well on the Ormen Lange field on behalf of PL 208, 209 and 250 (Ormen Lange Unit). The well will be drilled from the Leiv Eriksson semisub at position 63 degrees 34'53.76" North and 5 degrees 25'07.38" East. The Ormen Lange field spans Blocks 6305/4, 5 and 6305/7 and 8 in the Norwegian Sea.

StatoilHydro Sets World Record at Ormen Lange
Type: Subsea Equipment

Aug. 2009 - The world's deepest hot tap operations on a pressurized pipeline have been performed on the Ormen Lange field in the Norwegian Sea during early August. Enhanced flexibility in deepwater is another advantage of such operations, two of which were conducted on Ormen Lange in a depth of 2,822 feet (860 meters). The operations were done to tie in a new subsea template in the southern part of the Ormen Lange field to the existing infrastructure on the sea bed. The two hot taps were monitored and controlled from the surface, assisted by 100 sensors, 23 cameras and 18 subsea computers deployed on the seabed to transmit data via heavy duty cables. Hot tapping operations involve doing repairs, replacements or tie-ins on pipelines which remain pressurized. That makes it possible to avoid expensive shutdowns and simplifies the tie-in of new pipeline systems to existing infrastructure. The Ormen Lange gas development in the Norwegian Sea ranks as one of the biggest and most demanding industrial projects ever conducted in Norway.

Ormen Lange Ramping Back Up After Maintenance
Type: Status Update

Jul. 2009 - Royal Dutch Shell said its Ormen Lange gas field is ramping up after a maintenance program curtailed output. The field was affected by maintenance at its onshore processing plant at Nyhamna, Aukra municipality, but the company declined to say how much capacity was offline. The field's maximum output is 2 Bcf/d (70 MMcm/d). Ormen Lange is located 75 miles (120 kilometers) north west of Kristiansand in the More Basin of the southern Norwegian Sea.

Grenland Group Loads Out Massive Ormen Lange Subsea Station
Type: Status Update

May. 2009 - The Grenland Group announced the completion of the 1,268 ton (1,150 tonne) Ormen Lange subsea template. The template was loaded out on a barge and will be towed for installation at 2,789 feet (850 meters) deep in the southern part of the Ormen Lange field in the Norwegian Sea. The field's well stream of gas, condensate and water is transported from the subsea templates through two 30-inch-diameter multi-phase pipelines, up the steep slope of the Storegga slide to Shell’s onshore processing facility at Aukra. The Grenland Group was subcontracted by FMC for Ormen Lange's subsea production systems.

Norske Shell to Conduct Exploration Drilling on Ormen Lange
Type: Status Update

May. 2009 - Shell received consent to conduct exploration drilling on the Ormen Lange field using the Leiv Eiriksson semisub. The targeted appraisal well, 6305/5-3 S, is located in the Norwegian Sea, roughly 62 miles (100 kilometers) northwest of the More coast on PL 208, 209 and 250. Leiv Eiriksson is drilling the planned monitoring well and several production wells for the second phase of development on the Ormen Lange field. Drilling is expected to commence May 20.

Ormen Lange Subsea
Producing - Oct 01, 2007 to -

Production from Ormen Lange commenced on October 1, 2007. With daily rates expected to increase over the first couple of years, production rates for the first phase of development is 70 million standard cubic meters of natural gas and 50,000 barrels of condensate a day. Peak production is predicted for 2010.

Under Construction - Apr 02, 2004 to Sep 30, 2007

Ormen Lange is being developed in two phases. In the first phase, or development phase, StatoilHydro served as the operator, and two subsea templates with accommodations for 16 wells, as well as related subsea pipelines, were installed. Shell serves as the operator during the second phase, or production phase, where two more subsea templates will be installed, as well as a compression unit.

Ormen Lange
Producing - Oct 01, 2007 to -

After production commenced on Oct. 1, 2007, the second phase of development started, including the installation of two additional subsea templates and a compression unit.

Under Development - Apr 02, 2004 to Sep 30, 2007

The first phase of development on Ormen Lange consisted of the installation of two subsea templates with accommodations for eight wells each, as well as related subsea pipelines.

Discovery (Appraised) - Jun 04, 2002 to Apr 01, 2004

The well was permanently plugged and abandoned after testing as a gas appraisal well on 2 June 2002.

Appraisal Drilling - Mar 14, 2002 to Jun 03, 2002

The well was spudded on 16 March 2002 and reached a total depth of 2975 m in the Late Cretaceous Springar Formation.

Discovery (Appraised) - Sep 09, 2000 to Mar 13, 2002

The well was plugged and abandoned as an oil and gas appraisal well on 8 September 2000.

Appraisal Drilling - Jul 13, 2000 to Sep 08, 2000

Appraisal well was spudded with the semi-submersible installation Scarabeo 5 on 13 July 2000 and drilled to a total depth of 3175 m in the Late Cretaceous (Campanian & Late Santonian) Nise Formation.

Discovery (Appraised) - Aug 31, 1998 to Jul 12, 2000

The well was plugged and abandoned on 30 August 1998 and was classified as a gas appraisal well for the Ormen Lange 6305/5-1 gas discovery.

Appraisal Drilling - Jul 08, 1998 to Aug 30, 1998

Wildcat well 6305/7-1 was spudded in 857 m water depth with the semi-submersible installation "Ocean Alliance" on 6 July 1998 and drilled to TD at 3377 m in the Late Cretaceous Springar Formation.

Discovery (Drilled) - Oct 08, 1997 to Jul 07, 1998

The well was temporarily plugged and abandoned as a gas discovery on 7 October 1997.

Exploratory Drilling - Jul 27, 1997 to Oct 07, 1997

Wildcat well 6305/5-1 was spudded with the semi-submersible installation "Ocean Alliance" on 27 July 1997 and drilled to a total depth of 3053 m in the Nise Formation.

Update History
The SubseaIQ Team works everyday to provide you with the latest information on the offshore field development market. The following table provides you with a detailed record of each addition and update made to this project by the SubseaIQ team.
UPDATE TYPE DATE DAYS AGO
Field Updated Mar 15, 2011 800
Activity Added Mar 15, 2011 800
Activity Added Feb 02, 2011 841
Field Updated Feb 02, 2011 841
Activity Added Dec 16, 2010 889
Field Updated Dec 16, 2010 889
Activity Added Nov 16, 2010 919
Field Updated Nov 16, 2010 919
Activity Added Aug 17, 2010 1010
Field Updated Aug 17, 2010 1010
Field Updated Jan 12, 2010 1227
Activity Added Jan 12, 2010 1227
Activity Added Jan 11, 2010 1228
Field Updated Jan 11, 2010 1228
Field Updated Oct 21, 2009 1310
Activity Added Oct 21, 2009 1310
Activity Added Sep 29, 2009 1332
Activity Added Sep 17, 2009 1344
Activity Added Aug 28, 2009 1364
Activity Added Aug 12, 2009 1380
Field Updated Jul 06, 2009 1417
Activity Added Jul 06, 2009 1417
Activity Added May 15, 2009 1469
Activity Added May 13, 2009 1471
Field Updated Jan 06, 2009 1598
Facility Updated Jan 06, 2009 1598
Project Description Added Nov 24, 2008 1641
Facility Added Jun 12, 2008 1806
Facility Status Added Jun 12, 2008 1806
Field Status Added Jun 11, 2008 1807
Field Added Jun 11, 2008 1807

    Project Update History Search - View all the lastest updates made by the SubseaIQ team.
 
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Facility Name Ormen Lange Subsea
Duty Gas
Operator Shell
Current Status Producing since 2007
Host Type Subsea Tieback
Water Depth 850 m / 2,805 ft
Dev.Cost $8,000,000,000
 
Region Norway
 
Location 6305/4, 6305/5, 6305/7, 6305/8
 
Field Name Ormen Lange
Discovery Date Oct 1997
Block 6305/4, 6305/5, 6305/7, 6305/8
Reserve Type Gas
Current Status Producing
Production Start Oct 2007
Water Depth 1,100 m / 3,630 ft