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Goliat – the first oil field in the Barents Sea

The Goliat FPSO under construction in Ulsan in South Korea (March 2012).

The new operations and regional office in Hammerfest can house 120 personnel. 2

High quality seismic and detailed analyses are essential to making new discoveries.

The Goliat project After many years of planning, the Goliat project is taking shape. The Goliat development is one of the biggest industrial projects ever carried out in northern Norway. It is the first oil field to be developed in the Norwegian sector of the Barents Sea. Although Goliat is a relatively small project, it is of considerable importance to Finnmark and the future development of the petroleum industry in northern Norway. Development costs for the project are estimated to be about NOK 36 billion. Goliat will provide between 150 and 200 jobs on the platform offshore and in the operations organisation in Hammerfest. Annual operating costs will amount to around NOK 1 billion, and many local companies will be supplying goods and services while the field is in production. In other words, Goliat is an important building block for Finnmark, northern Norway and the northern regions.

be separated in the processing plant. The oil will be stored in tanks on the platform, where it will await off-loading at regular intervals and transport to the market. The estimated recoverable oil reserves are approximately 174 million barrels, and at peak production the field will produce about 100,000 barrels of oil per day. The Goliat field is expected to be on stream for at least 15 years. If more oil and gas are discovered in neighbouring fields, it will be possible to link these to the Goliat platform, with a resulting extension of production. Participants in the Goliat licence are Eni Norge (65%) and Statoil (35%). Eni Norge is the operator.

The eight subsea templates were installed at the field location in Spring 2011. They weigh about 300 tonnes each, are 25 metres tall, and 33 by 23 metres across.

Under construction Work is well under way. The office in Hammerfest is established and personnel are being hired. The Goliat project will use a helicopter terminal and supply base in Hammerfest to facilitate the transport of personnel and equipment to the field. The Goliat platform is under construction in South Korea. It is a floating platform which will be located 85 kilometres north-west of Hammerfest. More than 60% of the contract values have been awarded to Norwegian suppliers following competitive international tenders. A total of 22 wells will be drilled into the Goliat reservoirs – all tied back to the floating platform. At least 15 years The wells will produce oil, gas, water and some sand which will 3

The Goliat platform This is what it looks like. The Goliat facility is a circular, floating platform specially designed for conditions in the Barents Sea. It is a Sevan 1000 type facility weighing 60 000 tonnes. It is 107 metres in diameter at deck level and extends 30 metres below the sea surface. It is a floating production, storage and off-loading facility, often abbreviated to FPSO. It has been designed by the Norwegian company Sevan Marine and construction work is being carried out in South Korea. The platform contains an oil storage unit within its cylindrical hull. The processing plant and 120-cabin accommodation unit are installed topside of the hull. All those working on the platform will have their own private cabins. Custom design The platform is specially designed for extreme Arctic weather conditions. Work areas are designed so that most operations can be carried out protected from the elements. The hull is fatigue resistant and constructed with double bottom and sides. It is designed for an operative lifetime of 30 years and constructed in compliance with strict environmental requirements.

The Goliat FPSO under construction in Ulsan in South Korea (March 2012). 4

Huge capacity The platform has greater storage capacity than other Sevan installations in the North Sea, and can store as much as one million barrels of oil. Shuttle tankers will run to and from the Goliat facility to off-load on a weekly basis. The large storage capacity provides many safety benefits. In poor weather, oil can be stored on the FPSO to await off-loading to a tanker when the weather improves. There are also other safety-enhancing features built into this Sevan 1000. A special off-loading system employing long hoses means that oil transfer can take place from all sides of the platform. Geostationary The FPSO is a geostationary platform, permanently moored in position and not affected by currents or wind. This makes it easier to supply it with electrical power from land, which is more environmentally-friendly than power generation offshore. A large floating element at the base of the hull reduces wave motion, which is of great benefit to personnel working on board.

Field development involves eight subsea templates and 22 wells.

The Goliat FPSO (floating production, storage and off-loading facility) is under construction at the Hyundai Heavy Industries yard in Ulsan in South Korea. The Esvagt Aurora has been specially built for Eni Norge and the Goliat project. It is a combined state-of-the-art standby and contingency vessel.

Facts about Goliat

The development concept

• Owners: Eni Norge AS (65% operator) and Statoil Petroleum AS (35%). • Estimated oil reserves: 28 million Sm3 o.e. / 174 million barrels • Estimated gas reserves: 8 billion Sm3 o.e. • Operations and regional organisation: Hammerfest • The field is planned to come on stream in the third quarter of 2014.

The Goliat FPSO concept is a circular facility equipped with a processing plant, oil storage facility and living quarters. Produced water is re-injected into the reservoir. Produced oil is stored temporarily on the FPSO prior to transport to the market in shuttle tankers. The reservoir drainage strategy involves water and gas injection using a total of 22 wells from 8 subsea templates. Eleven of the wells are producers, nine are water injectors, and two gas injectors. Goliat will run on electrical power supplied from the mainland via a subsea cable, combined with energy produced on the platform. 5


A career for you? Goliat needs people – both onshore and offshore. Could Goliat offer a dream career for you? Eni Norge needs more skilled people, especially from Finnmark and northern Norway, both in our regional office in Hammerfest and on the Goliat platform. We will be advertising positions and hiring personnel in the coming months. A new office building is under construction in Hammerfest with space for between 60 and 120 personnel. Many employed here will have a technical background in the fields of drilling, geology and reservoir engineering, and administration. Many of the positions require a college or university education. A variety of jobs About 100 people will be employed on the platform, working a shift system. Here we need people with all kinds of skills for all kinds of jobs such as platform managers, instrument technicians, control room and field operators, logistics and maritime managers, systems operators, electricians, nurses, chefs and cleaning staff.

Personnel working on the Goliat platform will have two weeks on and four weeks off. This is standard practice on the Norwegian shelf. Eni Norge is looking to recruit manpower from Finnmark and northern Norway, and is making efforts to encourage young people from the region to look for careers in the petroleum industry. We are involved in a number of projects in schools, colleges and universities. Science in practice Joint agreements have been signed with Kirkenes Upper Secondary School and work is progressing to obtain similar agreements elsewhere. We participate in career days and education fairs. Virtual classrooms have been set up in Hasvik and Måsøy municipalities. In Hammerfest we are working with the municipality to establish a Newton Room providing secondary school pupils with the opportunity of observing the importance of science in practice. The first Eni Norge apprentices started their training programme in chemical processing in 2011. This is a joint project with Statoil which will continue into 2012. This time there will be programmes in mechanics, electronics and automation, and there will be more apprenticeship programmes in the future. The Goliat project is planning its own apprenticeship scheme in the fields of mechanical installation, logistics, electrical installation and administrative work. Eni has helped support the Nordkapp Maritime Simulator Training Centre and provides scholarships to students from Finnmark who wish to take a Master’s degree in Energy Management at the Eni Corporate University in Milan. 7

The Esvagt Aurora has been specially built for Eni Norge and the Goliat project. It is a state-of-the-art contingency vessel designed for rescue and oil spill contingency operations.

Always prepared We are employing innovative methods to achieve our main objective – the prevention of oil spills. Goliat represents a new standard in oil spill prevention on the Norwegian shelf. The authorities place strict demands on oil spill contingency linked to the Goliat project. This is why we are investing massive resources and much time in research and development in oil spill prevention techniques. In co-operation with Statoil we have completed projects costing more than NOK 8

30 million. The results of this research are being used to develop oil spill contingency for the Goliat project. Rapid detection To prevent oil spills, it is vital to monitor production. In this way an oil spill can be detected rapidly and combated as close to its source as possible, before it has time to spread. We will deploy sensors and carry out visual monitoring of the seabed, and we will install radar on the platform and vessels. These will raise the

alarm if any unforeseen incidents occur. Day or night, and whatever the daylight conditions, all production wells will be shut down until the cause has been established. Eni Norge will have use of the Esvagt Aurora, a state-of-the-art contingency vessel built in Spain, and completed in the summer of 2012. The vessel will be permanently on station about 500 metres from the platform. It is equipped with radar and an infrared camera which will detect and monitor oil slicks regardless of daylight conditions. This makes it possible to monitor and recover any oil. The standby vessel can also be used in rescue operations. Two smaller, high-speed boats can be launched at a few minutes’ notice to rescue personnel from the sea. The standby vessel will also have additional engine capacity to enable it to assist in towing operations.

Seas Association for Operating Companies (NOFO) to enable local fishing vessels to be approved as part of the permanent oil spill contingency effort. No-one knows the weather and current conditions as well as their crews, and they can be at the scene rapidly if the worst should happen. About 30 fishing vessels are equipped to take part in oil spill contingency operations, and their crews train on a regular basis. Oil spill contingency equipment can be adapted to fishing vessels and the operations they will undertake. Involving the fishing fleet in this way is a new initiative on the Norwegian shelf, but has been tried and tested in other parts of the world. Effective coastal contingency plans To prevent oil spills reaching land, the Goliat project will involve an efficient coastal oil spill contingency system.

New to Norway Eni Norge has for several years collaborated with the Fishermen’s Association in northern Norway, Statoil and the Norwegian Clean


Electricity from the mainland In the summer of 2012, Goliat will be equipped with the world’s longest subsea cable of its kind, reducing CO2 emissions by half. The Goliat platform will be supplied with electrical power from land. This is the most environmentally friendly means of energy supply, and will reduce emissions of CO2 by an average of 115,000 tons annually, compared with a system involving generation on the platform. If Goliat were to produce all its own energy, emissions would be roughly doubled. Longest in the world Electricity will be supplied firstly by means of a land cable starting at Hyggevann near Hammerfest from where a subsea cable will be laid offshore into Kvalfjorden and seawards to the Goliat platform. The subsea cable is about 106 km long with a supply capacity of 75 MW, and is currently the longest of its type in the world. It will be buried in the seabed or covered with stone or heavy fill to prevent trawl nets or other fishing equipment from snagging on it. A new transformer at Hyggevann is currently under construction. It has been specially designed to blend into the landscape.

Does this mean that there will be a shortage of electricity on land? The answer is no. For one thing, the power supply from shore will be combined with that from a gas turbine generator on the platform. If a shortage arises, the generator will ensure that there is enough to maintain at least partial production from the field. Secondly, the supply grid in the Hammerfest area will be upgraded and thirdly, studies of the grid capacity indicate that Goliat can obtain the power it needs for production without overloading the existing supply system. Extra capacity Goliat will draw between 20 and 40 MW from the cable during normal operations. Most of the power supplied to the platform will be used to drive large compressors, pumps and electrical heaters needed for production operations. Some will be used to provide light, heating and ventilation. The cable will be set up with additional capacity allowing it to obtain more power from onshore when grid capacity on the mainland has been upgraded. Eni Norge will look into the possibility of full electrification – the supply of all electrical power from shore.

The transformer at Hyggevann (August 2012).


The hiking path to Tarhalsen.

The Reindeer Racing World Cup.

Desire Goliat is helping to boost development, revenues and a desire to settle in Finnmark: Development and operation of the Goliat field will lead to greater activity both locally and regionally. It means the creation of several hundred new jobs, the purchase of local goods and services, and support for important cultural activities and projects. Local suppliers Just as we feel it is valuable to recruit local manpower, Eni Norge also wants to make use of local suppliers. When Goliat comes on stream, our proximity to production will be a great benefit. Previous experience of similar projects indicates that of the total operational expenditure of NOK 1 billion per year, 30 per cent will be passed on to local and regional trade and industry. We are already in contact with several local suppliers in the fields of energy, impact studies and graphic design. We are making sure that local and regional suppliers are involved in competition for contracts. All tenders must be made public, and suppliers who are awarded large contracts are contractually

obliged to have a local presence or employ local subcontractors. We are working together with PetroArctic – a suppliers’ network with many members representing northern Norwegian trade and industry. PetroArctic monitors the supplier market and advertises opportunities. We care Eni Norge cares. We respect the environment, the people and the cultures in the places where we operate. We want to enhance people’s desire to settle. We also support cultural events and activities in northern Norway, including the Varanger Festival, the Ingøy Days Festival, SlowFood and the Sea Fishing Festival on Sørøya, the Kirkenes Women’s Conference, the Nordkapp Film Festival, the Insomnia Music Festival in Tromsø, the Reindeer Racing World Cup and the Reindeer Portal. As well as several northern Norwegian projects in the field of oil spill protection, we have also provided considerable financial support to other environmental research projects.


August 2012


Goliat the first oil field in the barents sea  
Goliat the first oil field in the barents sea