Statoil ASA is extending its production stoppage in the Njord oilfield, located in the Norwegian Sea, to reinforce a drilling platform.
Production was originally halted on July 27 due to some small deformations found in some beams and other structural elements in the deck framing. Oil and gas was emptied from the platform.
Following this stoppage, the Norwegian giant originally eyed mid-September of 2013 to resume production. In early September, the start-up was pushed back once more until late September due to the findings of the further analyses and inspections conducted.
While the inspections yielded no new damage, analysis showed that some of the deck’s structures are too heavily loaded. Structural reinforcements are required before production can continue once again.
Statoil spokesperson Ørjan Heradstveit confirmed that an ancillary property, the nearby Hyme field, is also "100% affected during the extended stoppage at Njord." Hyme is tied back to the existing infrastructure on the Njord A floating steel platform.
In the summer of 2012, extensive reinforcement work was completed the Njord A platform’s deck framing. Small deformities were discovered in a number of beams; the damage was reinforced and no further work was deemed necessary at the time.
The maintenance was planned to extend lifetime; output from nearby Hyme field; and production from the Njord North-West Flank.
“There must never be any doubt that it is safe to work on Statoil’s installations. To be on the safe side, we have therefore decided to postpone start-up until the necessary reinforcements have been completed,” said Njord Production Director Arve Rennemo.
Statoil is now in the planning stages of addressing these concerns, he said. Based on present data, Rennemo said that structural repairs could continue into summer 2014.
German-based E.ON SE, who controls a 30% interest in Njord and a 17.5% interest in Hyme, said through a company spokesperson that this production outage will significantly impact production volumes for 2014, although the company’s 2013 outlook remains unchanged by the stoppage. The company also experienced a drop in shares following the announcement.
Faroe Petroleum, which maintains a 7.5% interest in Njord and Hyme, reported a 12% drop in share price following the announcement. The stoppage led to its first-half average output falling to 7477 boe/d from 8581 boe/d a year ago.
The summer of 2012 was not the first time Njord has been affected by operational concerns. In April 2011, production was temporarily halted due to the discovery of a gas leak.
While Statoil is Njord’s operator with a 20% interest, GDF Suez E&P Norge owns the majority interest with 40%. GDF also maintains 20% control of Hyme. A company spokesperson with GDF declined further comment.
Statoil’s remaining partner in Njord is VNG Norge, 2.5%. Statoil operates and maintains the majority interest in Hyme with 35%, and their remaining partner is Core Energy, 17.5%;
Image: Location of Njord field, off Norway. Courtesy Statoil ASA
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