Critical issues:

• The Ormen Lange field is the first deepwater discovery to be developed offshore Norway at a depth of approximately 1000 metres
• Developing Ormen Lange represents a major challenge because of the water depth, the extremely rough seabed conditions, the long tie-back distance and the demanding weather conditions
• Norsk Hydro together with its partners wanted to evaluate a full range of innovative solutions

Solutions:

• DNV Consulting performed several risk assessments to evaluate the pros and cons of various deepwater field development solutions
• Solutions were ranked with respect to the ability to meet future sales gas demands and the NPV of deepwater interventions
• We developed a production availability and intervention model to quantitatively assess the financial consequences associated with equipment failures

Value delivered:

• Norsk Hydro and its partners were provided with in-depth insight to the opportunities and threats associated with the various field development concepts allowing sound economic decisions to be made
• Potential improvement areas and key differentiators between the competing concepts were identified, enabling the client to find the right balance between capital expenditures, revenue and operating expenditures