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Petroleum

Asgard B Floating Gas Platform Completes Critical Mating Operation

Strategic Insights

— 1 min read

The Asgard B floating gas platform has completed a critical milestone in its troubled history, with engineers attaching the final section of the 33,000-tonne "topside" to the vessel's semi-submersible hull in Stavanger harbour. This marks the beginning of the final construction and commissioning phase of the platform, which will produce 12 billion cubic meters of gas per year when fully operational next autumn. By 2006, Asgard B is expected to account for about 15% of Norway's gas exports, according to Statoil, the national oil company and operator of the project.

Key Takeaways:

  • The Asgard B floating gas platform has completed the critical mating operation, with the 33,000-tonne "topside" attached to the vessel's semi-submersible hull.
  • The platform will produce 12 billion cubic meters of gas per year when fully operational next autumn.
  • By 2006, Asgard B is expected to account for about 15% of Norway's gas exports.
  • The original cost of the platform was estimated at NKr6.6bn, but the complexity of building such a large floating structure led to a final cost estimate of NKr9.9bn.
  • The project has been marred by cost overruns and complexity issues, with Kvaerner executives expressing confidence that the final cost estimate will be accurate.
  • The 4,000 workers who have been building Asgard B will face a severe slump in activity next year, with few new projects in the pipeline until 2001.
  • Up to half of Norway's fabrication industry is expected to close permanently due to the decline in activity.
  • The Norwegian government has been criticized for mishandling the boom-and-bust cycle in the country's fabrication yards, with trade union representatives warning of a permanent loss of expertise and skills.

Statistics:

  • The Asgard B floating gas platform produces 12 billion cubic meters of gas per year.
  • By 2006, Asgard B is expected to account for about 15% of Norway's gas exports.
  • The original cost of the platform was estimated at NKr6.6bn.
  • The final cost estimate of the platform is NKr9.9bn.
  • 4,000 workers have been building the Asgard B platform.
  • Up to half of Norway's fabrication industry is expected to close permanently.
  • The platform is expected to be fully operational next autumn.

Sources:

  • Financial Times Limited 1999. Copyright All Rights Reserved.

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