Oil and Gas Fields in Norway
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This book is a work of reference which provides an easily understandable Oil and gas fields in n survey of all the areas, fields and installations on the Norwegian continental shelf. It also describes developments in these waters since the 1960s, Oil and gas fields including why Norway was able to become an oil nation, the role of government and the rapid technological progress made. In addition, the book serves as an industrial heritage plan for the oil in nOrway and gas industry. This provides the basis for prioritising offshore installations worth designating as national monuments and which should be documented. industrial heritage plan The book will help to raise awareness of the oil industry as industrial heritage and the management of these assets. Harald Tønnesen (b 1947) is curator of the O Norwegian Petroleum Museum. rway rway With an engineering degree from the University of Newcastle-upon- Tyne, he has broad experience in the petroleum industry. He began his career at Robertson Radio i Elektro before moving to ndustrial Rogaland Research, and was head of research at Esso Norge AS before joining the museum. h eritage plan Gunleiv Hadland (b 1971) is a researcher at the Norwegian Petroleum Museum. He has an MA, majoring in history, from the University of Bergen and wrote his thesis on hydropower ????????? development and nature conser- Photo: Øyvind Hagen/Statoil vation. He has earlier worked on projects for the Norwegian Museum of Science and Technology, the ????????? Norwegian Water Resources and Photo: Øyvind Hagen/Statoil Energy Directorate (NVE) and others. 17 deVeloPments on tHe ncs Political guidelines and technological choices Troll A is towed out to the field in 1995. Photo: Leif Berge/Statoil This article describes developments on the NCS in terms of the conditions underpinning Norway’s emergence as an oil and gas nation, the role of government and the rapid technological progress made. An approach has been chosen which illustrates various eras and development features in relation to government administration and development of the oil and gas fields on the NCS. Various factors have determined the choice of development solution. The government’s political goals have varied between one period and another, from encouraging the import of foreign expertise and technology, via national management and control, to liberalisation and a focus on improved resource utilisation. Technological progress has been a continuous process, which has eventually made it possible to develop ever more demanding fields. Substantial design differences accordingly exist in terms of size, complexity, technical solutions and architecture. 18 the start-up period During the early years of oil activity on the exploration and exploitation of submarine natural NCS, the government was concerned to attract resources. However, Britain, Norway and Denmark multinational companies. Norway depended on did not reach agreement until 1965 on where the their specialist expertise and their technical and boundaries between their sectors should be drawn financial capacity to get started in an acceptable in accordance with the median line principle. manner. Few Norwegians were involved in the industry, and few domestic companies sought to commercial basis for oil activity win deliveries. Little expertise was available in Norway at the beginning of the 1960s on exploring for, producing natural basis for oil activity or processing petroleum. No education was provi- Geology ded in this area, no government bodies or institu- The Groningen field in the Netherlands was disco- tions worked with oil and gas, and no legislation or vered in 1959. This aroused the interest of the big other regulations specifically addressed petroleum international oil companies, which sought permis- activity. To some extent, people were familiar with sion to conduct seismic surveys in the North Sea off building large structures such as dams, bridges and the UK and Norway. The thick sedimentary strata on ships, but oil operations were unknown. During the the British and Norwegian sides of the North Sea initial period, therefore, attention was focused on proved to offer very favourable conditions for petro- learning to adapt solutions developed abroad. leum accumulations. The maritime expertise acquired by Norwegians over generations was a big advantage when oil exploration Norwegian continental shelf (NCS) and production began. Many seafarers accustomed to Negotiations were pursued in the early 1960s over working far from home for long periods were recruited jurisdiction in the North Sea. The legal status of the by the petroleum industry. Seagoing experience from continental shelf had not been clarified at this point, the sea and great adaptability were important in an and it was by no means certain that the Norwegian international business like oil. Norwegian shipowners state had the proprietary right to possible discove- also had experience of operating internationally, and ries. Norway declared its sovereignty over the con- already had contacts in the oil industry. Many of them tinental shelf in 1963, giving it jurisdiction over all were well capitalised and accustomed to making big and fairly risky investments. A number of shipyards large and small engaged in newbuilding and repair were strung out along the Norwegian coast. These had little involvement in platform building during the early years, but a number adapted quickly to the off- shore sector after the sharp rise in crude prices in the 1973 oil crisis and a series of discoveries on the NCS. They built drilling rigs, production platforms, and sup- ply and support ships. International expertise The government saw that the big oil companies had both the technological expertise and the capi- tal required to find and exploit possible petroleum resources. Norway accordingly depended on these multinationals during the early years to exploit its oil North Sea boundaries in 1965. From a brochure published and gas. Government policy focused on attracting by Esso Norge international oil companies and technology. 19 Foreign suppliers therefore dominated initially in tors, who largely hailed from the USA (Sedco, Odeco every area. The technology and development solu- and Zapata Offshore). tions imported in this period were regarded as the best in the world, but were not necessarily adapted Exploration drilling from semi-submersibles to North Sea conditions. That left room for impro- The idea of drilling from a floating unit emerged in vement, where Norwegian industry was quick to 1947 when barges were used for this purpose in the become involved. The structure of Norway’s ship- Louisiana swamps. Such vessels were also needed building sector, with many small and dispersed in deeper water, however and Bluewater I was built units, meant that big jobs had to be split between in 1961 as the first semi-submersible. This was fol- a number of yards. Sharing work in this way per- lowed by a number of new designs – Ocean Drilling mitted quick delivery while allowing local yards and (Odeco) in 1963, Sedco 135 (Friede & Goldman) in engineering works to benefit from the expertise. 1965 and Pentagone 81 (Neptune) in 1969. Esso was the first company to gather geophysical data on the NCS, starting as early as 1962 in Norway’s North Sea sector. These surveys provided indications that oil exploration was worth pur- suing. A number of companies became involved in this activity during 1964. When the Ministry of Industry put most of the blocks on the NCS south of the 62nd parallel on offer in 1965, 11 appli- cants indicated their interest. Nine industrial groupings received pro- duction licences for a total of 74 blocks. Drilling Drilling for oil has been an industry for more than 150 years, with the rotary method first adopted in the early 20th century. From today’s perspective, this technology Ocean Traveler being towed from New Orleans to Stavanger. remained at an early stage when Photo: Norwegian Petroleum Museum archive operations began in the North Sea despite the many improvements already made. While drilling exploration wells is Semi-submersibles proved to be well adapted for relatively simple, those for production are more drilling in the North Sea. Such units float on ponto- demanding. When oil drilling began on the NCS, ons, and their deck height above the sea is adjusted opportunities to angle a well away from the verti- with the aid of ballast tanks. cal were fairly restricted. That meant a number of Odeco’s fifth drilling rig, Ocean Traveler, was deli- wellhead platforms were required, and reservoir uti- vered during 1966 from a yard in New Orleans and lisation was relatively low. The latter only improved towed to Stavanger that June. Esso used this ves- when deviated, horizontal and multilateral (side- sel to initiate drilling on the NCS in June 1966. An track) drilling techniques were developed. accident a few months later showed that the design The oil companies outsourced much of the practi- was not strong enough for North Sea weather con- cal work in exploration drilling to various contrac- ditions, and Norwegian shipbuilding expertise was 20 The Grane platform stands on a steel jacket. Photo: Norsk Hydro mobilised to improve the rig. platforms by 1963. The first of them stood in shallow The first Norwegian rig was built in 1966 on the water, but the technology was further developed to basis of US technology. Ocean Viking was a sister permit installation in ever deeper water. Constructed vessel to Ocean Traveler, and based on the Odeco in 1988, the largest steel platform of this type stands design. Half the substructure and pontoons were in 412 metres of water in the Gulf. built at Rosenberg Mekaniske Verksted in Stavan- Units supported by steel jackets represented the ger. The other section, identical but a mirror image, best available technology, and such platforms accor- came from Burmeister & Wain in Copenhagen. dingly dominated on the NCS during the early years.