Norwegian energy giant Statoil ASA STO announced that it has successfully completed the structure and module installation operations for the Gullfaks subsea compressor project (GSC) subsea station. The installation of the compressors was completed in the end of June. Notably, the GSC project marks the first subsea wet gas compressor on a global platform.
Subsea wet gas compression at Gullfaks C will increase production by 22 million barrels of oil equivalent, and prolong plateau production by about two years. The project is currently in its last stage. The project is now being tested and prepared to be handed over and become operational in the last quarter of this year.
Testing of the complete compressor station is in progress and the project is advancing as planned. Significant arrangements have been made on Gullfaks C to bring the subsea compressor online. Apply Sørco is performing the works, which have reached the final stages.
The compressor is a strong and flexible measure to increase oil recovery (IOR) for the Gullfaks license. The compressor will now be hooked up between the L and M subsea templates and Gullfaks C. Tying in other subsea wells to the compressor via existing pipelines appears to be feasible. This may be far more advantageous for the project than anticipated earlier.
The heavy lift vessel Oleg Strashnov was used to install the protective structure and compressor station in early May. On Jun 26, the compressor and cooling modules were lowered into place from the Seven Viking. The plant will be tied back to the Gullfaks C platform in late summer and autumn.
The Gullfaks technology solution is a wet gas compressor that does not need any treatment of the well stream prior to compression. Subsea compression is more effective than a conventional topside compressor. Moreover, the platform evades extra weight and space needed by a topside compression module.
Currently, Statoil is executing two subsea compression projects at Åsgard and Gullfaks on the Norwegian continental shelf (NCS) in partnership with other licensees. The projects are vital parts for planning the subsea factories in the future.
Statoil currently carries a Zacks Rank #3 (Hold). Better-rankeds stocks from the same space are Transmontaigne Partners L.P. TLP, EQT Midstream Partners L.P. EQM and LRR Energy, L.P. LRE. All these stocks sport a Zacks Rank #1 (Strong Buy).
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