The Execution of the Oseberg Field Development Project
Authors: Linde Ø. 
Published: October 2008

Description:

The paper describes the methods of implementation and control of the Oseberg Oil and Gas Field development project in the North Sea. This project was the first offshore development project handled by Norsk Hydro as operator on behalf of a license group. The first phase of the Oseberg development comprised a platform field center, two subsea production wells, a 28" oil transport pipeline over 115 km to Norway and an oil storage and export terminal.

Application

The license block 30/6 was awarded for exploration in the fourth Norwegian license round in 1979, and hydrocarbons were first discovered in 1980. Field development approval was given 1984 after an intensive period of parallel exploration and concept/- execution development. The project was organized as an independent task force divided into four subprojects plus a common project staff group to handle common matters. The task force numbered about 650 people at peak.

Results

The first phase of the Oseberg development project was completed ahead of schedule and started production December 1st, 1988, four months prior to the committed target date of the field development plan. The Oseberg development project was completed within original budgets. Further, due to technology innovation significant savings were achieved in the well drilling programme.

Significance of Subject matter:

The Oseberg development project demonstrates successful management of a complex project comprising a multitude of large scale development units.

INRODUCTION

The Oseberg Field Development Project is in this context the phase 1 of the development and includes the production and living quarter platform (A), the drilling platform (B), the subsea stations (S) and the transportation system consisting of an oil pipeline to the Norwegian mainland, storage and tanker loading facilities (T) (Fig. 1 and 2). Up to this time, it is the largest and most complex offshore project on the Norwegian Continental shelf organized and managed by one project task force. The basic philosophies for the project execution are generally implemented by Norsk Hydrom Technology and Projects Division (T&P) for projects onshore and offshore executed by the division. This paper will deal mainly with these concepts and describe details only as illustrations.

THE NORSK HYDRO BASE ORGANISATION

Norsk Hydro is the largest industrial corporation in Norway. The Company is involved in fertilizers, light metals, oil and gas, petro chemicals, pharmaceutical and biomarine products and is an international company with subsidiaries in 21 countries around the world (Fig. 3). Norsk Hydro has a total of about 40000 employees and the annual turnover in 1988 was 10 billion US $.

THE T&P DIVISION BASE ORGANISATION

The T&P division is a corporate function and is responsible for preparation, planning and execution of all large capital investment projects for and on behalf of Norsk Hydro operating divisions (Fig. 4). It is also the home office for personnel allocated to projects. T&P is operated as a separate business unit and relations to the clients (other Norsk Hydro divisions) is formal, and based on commercial terms mutually agreed upon between the parties.