ConocoPhillips board OKs Ekofisk expansion project

Petroleum News Alaska Staff

The board of directors of ConocoPhillips has approved a plan for further development and growth of the Ekofisk Area in the Norwegian North Sea, the company said March 24.

The company said the goal of the project is to add reserves of 64 million barrels of oil equivalents net to ConocoPhillips and increase the area's processing capacity and reliability. The project also is approved by the co-venturers in the Ekofisk license (PL018).

ConocoPhillips Norway awarded the engineering, procurement and construction contract for the new Ekofisk 2/4 M platform to Aker Kvaerner, subject to the Norwegian government's sanction of the plan, expected in late May.

The Ekofisk 2/4 M steel wellhead and process platform will be southeast of the Ekofisk 2/4 J platform and connected by gangway with a tripod. The new platform will have 30 well slots, a high-pressure separator, equipment for produced water treatment and risers for tie-in of future projects. The 2/4 M platform will be remote controlled from the 2/4 J platform. Drilling will be conducted from a chartered jackup rig.

ConocoPhillips said it expects the steel jacket to be installed in 2004. Three wells will then be pre-drilled, prior to lifting the topsides into place in the early summer of 2005. Production is anticipated to begin in the fall of 2005.

Twenty-five wells will be drilled. The total estimated net cost is approximately US$361 million, including construction and installation of the new platform, drilling in the period 2004 to 2009, modification on the Ekofisk complex and on four more platforms to increase process capacity, and a new seabed power cable to optimize electricity management and thereby reduce emission of CO2.

ConocoPhillips Norway is the operator of PL 018 with an ownership interest of 35.11 percent. The co-venturers are: TotalFinaElf 39.9 percent; Norsk Agip A/S, 12.39 percent; Norsk Hydro A/S, 6.65 percent; Petoro A/S, 5 percent; and Statoil, 0.95 percent.