Norwegian offshore engineering and construction company Aker Solutions has signed a firm contract with oil firm OKEA for the electrification of OKEA's Draugen platform in the Norwegian Sea, offshore Norway.
The Draugen oil field sits in about 250 meters of water, and is located around 150 kilometers north of Kristiansund.
Aker Solutions said the contract had substantial value. Aker Solutions defines a substantial contract as between NOK 2.5 billion (currently at around $241 and NOK 4.0 billion (currently at around $385 million)
OKEA has selected Aker Solutions as the main contractor for Engineering, Procurement, Construction, and Installation (EPCI). The project will involve major modifications of the existing platform to enable power from shore. As a result of this, the emissions from Draugen are estimated to be reduced by as much as 200,000 tons of CO2 per year.
"Replacing the current power generation from gas turbines at the offshore platform and instead electrifying these from shore will enable production of oil and gas from Draugen with significant reductions in CO2 emissions. Lifetime -extension of these platforms are of crucial importance for the increasing need for energy and energy security in Europe," said Paal Eikeseth, executive vice president and head of Aker Solutions' Electrification, Maintenance and Modifications (EMM) business.
According to the company, lifetime-extension of the field can result in 20 years of production and value creation. The project is scheduled to be completed in 2026.
OKEA operates the giant Draugen platform at the namesake field off Norway, which started producing oil in October 1993.
OKEA acquired its interests in the Draugen and Gjøa offshore fields in Norway for 4.52 Billion NOK from Shell in 2018. Draugen achieved peak output of about 225 000 bopd in 2001.
Back in October 2021, OKEA also signed an agreement for a project that could see the Draugen platform powered by floating wind turbines to be supplied by Odfjell OceanWind.
In an interview with Offshore Engineer, Odjfell OceanWind's CEO shared more information on the agreement. Read Here.