Consortium led by Halvorsen TEC Awarded Offshore Water Treatment Package for the Johan Castberg Project
Statoil has awarded Halvorsen TEC, a wholly-owned subsidiary of Halvorsen Group AS, a project-specific agreement for a water treatment module for the Johan Castberg field. The field represents a significant greenfield development project with a mid-$50 per barrel of oil breakeven that is situated approximately 100 kilometers north of the Snøhvit field in the Barents Sea of northern Norway. Statoil has made the first call off of the agreement, which includes Front End Engineering and Design (FEED), and we expect the final call off to be exercised upon the receipt of the final investment decision (FID) in late 2017. Halvorsen TEC will carry out the delivery of this project in cooperation with GE Water.
The ~1,000 tonne water treatment module to be delivered is a sulphate removal unit (SRU), which is critical to protecting critical hydrocarbon production infrastructure, which would otherwise risk being damaged by significant levels of barium and strontium scale. Halvorsen TEC and GE Water have demonstrated how this technology can help Statoil and other oil and gas producers reduce their costs in increasingly challenging offshore conditions and at competitive costs. The further commercialisiation of Halvorsen TEC / GE Water’s concept is relevant for a global market of over $200 million in annual turnover, representing tremendous opportunity to displace existing players by offering a significantly better and more cost efficient solution to offshore water treatment challenges.
The module consists of three major filtration systems, two of which are provided by GE Water’s membrane technology. The final system involves the removal of oxygen from the water via highly-specialised membranes, a solution developed by RO Solutions, a subsidiary of Halvorsen TEC. This patented technology is expected to give RO Solutions a significant competitive advantage when bidding for other water treatment projects in Norway and abroad.
“Through our strategic collaboration with GE Water, Halvorsen TEC has been able to deliver a highly competitve offer to Statoil. Together, our two companies possess world-class expertise in water filtration and process design. Another important factor is that most of the value creation will take place within Norway and within our two organisations, which has been crucial in order to be competitive. In addition, Halvorsen TEC contributes substantial knowledge and experience in relation to Statoil’s technical requirements from its previous water treatment deliveries. Together with Statoil, we will now mature our concept such that the construction process and delivery timetable will be carried out according to expectations. This project is the culmination of many years of collaboration with GE Water and we are already discussing ways to further enhance our relationship”, said Svein Helge Pettersen, Managing Director of Halvorsen TEC.
Engineers from Halvorsen TEC and GE Water are in charge of the design work (FEED) in cooperation with Aker Solutions and Statoil. The FEED workstream is expected to be completed in late 2017, when a final investment decision for the project is expected.
Halvorsen TEC has in recent years developed considerable knowledge and technology related to the treatment of seawater in the offshore oil and gas sector. In adddition, strategic alliances in water treatment have been entered into to strengthen Halvorsen’s market position. The cooperation with GE Water started over five years ago and during this period the two companies have demonstrated several successful project deliveries for Statoil, Technip and Total.
“It is very important we deliver a robust and reliable solution to this project located in the Barents Sea. We will lay the foundation for this through the work that has now commenced and is due to be completed by the end of the year. Following FID, we expect construction of the water treatment module to commence in 2018”, says Pettersen.
Johan Castberg has an estimated 400-650 million barrerels of oil and is expected to produce oil for over 30 years – a value of approximately NOK 290,000,000,000 (2015 value).
Svein Helge Pettersen
Halvorsen TEC AS
Tel: +47 952 37 990
About Halvorsen TEC
Halvorsen TEC was established in 2003 and is today a complete EPCIC provider of water treatment packages, processing plants, waste heat recovery systems, support systems for gas turbines and related engineering services to a wide range of international oil companies. Halvorsen TEC has headquarters in Oslo, Norway, with locations in Stavanger and in Langhus.
About Halvorsen Group
Halvorsen is a leader in the provision of offshore platform processing equipment and services to the international oil & gas industry. Companies within the Halvorsen Group specialise in pressure and temperature technology, water treatment systems, energy recovery (WHRU), gas turbine technology, power packages, electrical switchboard systems, energy-efficiency systems and engineering services. The company is a pre-qualified, multi-discipline provider of process equipment to major oil companies, upstream equipment businesses and EPCIC contractors on a global basis. Halvorsen employs approximately 275 people and is headquartered in Stavanger, Norway.
For more information visit www.halvorsen.no