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Italy’s Eni to pick Goliat FPSO by year-end

Posted September 13, 2018 by Silvia Zurita in Uncategorized

STAVANGER, Norway, Aug 26 (Reuters) – Italian energy group Eni said it plans to pick this year a floating production vessel for its Goliat oil discovery, one of the biggest finds in the Norwegian Barents Sea.

Eni will choose between floating, production, storage and offloading vessels (FPSOs) designed by Aker Solutions (AKSO.OL: Quote, Profile, Research) and Sevan Marine (SEVAN.OL: Quote, Profile, Research) in a tender expected to be one of the biggest in Norway.

“Any day now we will get the tender in for the design competition and … by the end of this year we plan to award,” Kjetil Kiste, Eni’s lead engineer for the Goliat FPSO, told Reuters on the sidelines of the ONS oil fair in western Norway.

Kiste said both Aker Solutions’ concrete design and Sevan’s steel top-side structure were based on “proven technology” although such an Arctic FPSO has never been assembled.

In April, Eni said that Goliat, slated to start production in 2012, would cost at least $5 billion to develop and would produce 100,000 barrels per day.

Goliat is set to be the second offshore development in the Barents Sea after StatoilHydro’s (STL.OL: Quote, Profile, Research) Snoehvit gas field.

It is located about 85 km (53 miles) from the port town of Hammerfest off Norway’s northernmost tip.

Kiste said that some work remains to be done before the Goliat FPSO can be partly powered by clean onshore hydropower in a move aimed at reducing emissions of greenhouse gasses.

“We need to upgrade some parts of the electrical system in northern Norway and we need to add some units locally in the Hammerfest area,” he said, adding that supplying the needed 50-60 megawatts of electricity should not be a problem.

Norway’s authorities have been pushing for land-based power for offshore fields as a way to give its oil and gas industry a greener image and help meet CO2 emissions reduction pledges, but industry’s response has been cool due to high costs.

Bjoern Ellingsen, drilling manager for Goliat, said that in 2010 Eni plans to start drilling production wells that would link up with the FPSO when it is completed.

Ellingsen said a total of 10-15 production wells will be drilled at the field.

Eni is the operator for Goliat and has 65 percent of the licence. StatoilHydro has 20 percent and Noil Energy NOIL.NFF a 15 percent interest.

Source: Reuters