Aker prepares for first MA oil production in March 2008

Vol 11, PW 2 (31 May 07) People & Policy
     

Any hints of a delay in first oil production from the MA field might come as a surprise to Aker Floating Production ASA of Norway, a sister company of Aker Kvaerner, which is responsible for “full-field developmentâ€‌ of D-6.

This month on 21st May Aker told the Oslo stock exchange that it has signed a five-year charter agreement with Reliance valued at $750m for the deployment of its 60,000 b/d capacity â€کAker Smart 1’ Floating Production Storage and Offloading (FPSO) vessel at the MA field in March next year. Company spokesman and CFO Ivan Borner confirms to PETROWATCH that â€کAker Smart 1’ would be completed at the Jurong Shipyard in Singapore early next year before its seven-day journey to the MA field in time for first oil end-March 2008.

“We are going ahead with the schedule fixed in the contract,â€‌ says Borner. “Reliance has not told us anything that changes the schedule.

First production will depend on when the wells and wellheads are completed.â€‌ â€کAker Smart 1’ is one of three tanker-converted FPSOs under construction by the company.

Once it reaches the MA field, â€کAker Smart 1’ will need “at least a weekâ€‌ to mobilise, says Borner. “First thing to happen is that a ship will come to install the mooring for the vessel,â€‌ he adds.

“Second thing is to install the â€کChristmas Trees’ and the risers.â€‌ Reliance originally wanted to begin first oil production from the MA field on 15th February 2008, according to an Aker press statement on 11th January, which first announced the contract with a “non-disclosed clientâ€‌ for an “oil and gasfield offshore Indiaâ€‌.

In its agreement Aker offers Reliance an option to buy the FPSO “at different stages during the contract period.â€‌ Is that likely to happen “You’d better ask Reliance!â€‌ says Borner.