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GE, Kvaerner sign new agreement to continue development of subsea compression technology

Posted: 28 July 2003

GE Oil & Gas and Aker Kvaerner-Kvaerner Oilfield Products (KOP) have signed a new agreement for the continued development and commercialisation of innovative, subsea compression technology designed to reduce costs of deepwater oil and gas field exploitation.

An initial joint development agreement (JDA) between GE and KOP focused on the qualification of the subsea compressor technology through testing of a prototype, 850-kilowatt subsea module and the subsequent design and development of larger, 2.5 and 5-megawatt units.

A subsea module featuring GE's 2.5-megawatt, Blue-C Subsea Centrifugal Compressor, the first of its kind in the industry, was introduced in 2002 at the Offshore Northern Seas Conference.

The recently signed framework cooperation agreement replaces the JDA and covers the ongoing development, qualification and testing of the subsea compressor technology, focusing on deepwater gas fields located at long distances from shore or from a central offshore platform. GE and KOP currently are working on a pilot project to develop a 12.5-megawatt compression unit.

The first subsea compressor modules are expected to be ready for commercial service by 2008.

The GE-KOP joint effort began as part of the DEMO 2000 program launched by the Norwegian government to support the development of subsea systems to economically recover natural gas and oil from deepwater fields.

Until now, it has not been profitable to exploit many natural gas subsea fields, particularly those at depths of 500 meters or more, largely due to the cost of conventional offshore platforms.

The new subsea compressor module is a self-contained, turnkey system that can be installed on the seabed.

It can transport the well stream to a central platform, or directly to an onshore site which would eliminate the need for the platform.

Since the new module is designed for deepwater installation, reliability is a critical requirement. GE and KOP are working to develop a compression module that can operate in the harsh environment on the ocean floor for as long as three years, with no maintenance.

"Developing and implementing reliable subsea technology is clearly a major challenge, but it can produce huge benefits in the oil and gas industry," said Claudi Santiago, president of GE Oil & Gas, a unit of GE Power Systems. "We expect that developments such as the Blue-C Subsea Compressor will lead to a significant increase in seabed oilfield exploitation over the next several years."

To validate the innovative design and minimise any risks in the field for future systems, GE and KOP conducted rigorous thermodynamic, mechanical and endurance tests on the prototype 850-kilowatt unit.

The 12.5-megawatt module will undergo tests under actual operating conditions on a subsea gas field after being tested and qualified onshore (shop tests in a water-filled tank) and on the seabed (close to a platform with real process conditions or close to an onshore processing facility).

Feasibility studies have been performed with several oil companies for potential locations in the North Sea and the Norwegian Sea, for both gas boosting and gas re-injection applications. KOP, formerly Kvaerner Eureka, is based near Oslo, Norway and is a leading provider of subsea systems for oil and gas production.

The company supports all aspects of a subsea field development from initial concept screening through front-end engineering, design, procurement, subsea module manufacturing, assembly and testing, installation, commissioning and field support.

GE Oil & Gas is headquartered in Florence, Italy, the home of Nuovo Pignone, a long-time global leader in gas compression and turbo generation products.

GE acquired ownership of Nuovo Pignone in 1994 and since then has continued to expand its oil and gas business by acquiring or developing partnerships with other technology and experience leaders in the industry.

About GE Power Systems GE Power Systems is one of the world's leading suppliers of power generation technology, energy services and management systems, with 2002 revenues of nearly $23 billion.

Based in Atlanta, Georgia, GE Power Systems provides equipment, service and management solutions across the power generation, oil and gas, distributed power and energy rental industries.

For more information see www.gepower.com.

Posted by Richard Price, Editor Pipeline Magazine

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