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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