Award of the main contract on Grane


Norsk Hydro today awards Kværner Oil and Gas (KOGAS) the contract for construction of the production module on the Grane field. The total value of the contract is about NOK 3.5 billions, and includes both engineering, procurement and fabrication of the production module. The production module is the main part of the Grane installation, with a weight of about 11,000 tonnes.

The contract also includes the responsibility for technical interface of the various modules and standardized equipment for the whole plattform, and full responsibility for detailed engineering and procurement for the power generation module.

The award is pending government approval of the Plan for Development and Operations for Grane.
The two companies KOGAS and Aker Maritime has competed for this contract, after UMOE withdrew from the bidding round. The award is based on a total evaluation of quality and price. KOGAS had the most competitive offer.
KOGAS has cooperated with Norsk Hydro on the basic engineering for Grane. The objective of the basic engineering was to ensure a proper project definition prior to contract award, with regards to technical solutions, time and cost estimates.

The Grane field is the largest undeveloped discovery on the Norwegian Continental Shelf. It is located about 170 kilometres west of Karmøy. The plan is to build an integrated production-, drilling- and living quarter platform on a steel jacket, and use gas injection to maintain pressure in the reservoir.

Hydro submitted the PDO for the Grane field in December last year, and the plan is now pending approval by the Norwegian parliament. Planned production start is in 2003. The Grane platform will reach plateau production of more than 200.000 barrels oil per day in 2005. Total investments are estimated to NOK 15 billions.

The lisencees are Hydro (operator) with 24.4 %, Esso 25.6 %, Statoil 6.4 % and SDFI (State's Direct Financial Interest) 43.6 %.