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Petroleum

Conoco Announces First Oil Production from Heidrun Tension Leg Platform

Strategic Insights

— 1 min read

Conoco, the developer of the Heidrun Tension Leg Platform (TLP), has announced the first oil production from the Norwegian Sea facility, marking a significant milestone in the project's development. The company has transferred its operatorship to Statoil, Norway's state oil company, and expects the platform to reach a plateau oil production rate of 200,000 barrels per day in the first quarter of 1996. The partnership, with Statoil as production operator, is working to optimize processing equipment, which may increase production to as much as 250,000 barrels per day.

Key Takeaways:

  • The Heidrun TLP is the single largest development undertaken by Conoco and its parent company DuPont, with a cost of NOK 26.4 billion (US $4.2 billion).
  • The platform is built entirely of lightweight aggregate concrete and features several technological firsts, including a titanium drilling riser and a direct shuttle tanker loading system.
  • The field, located in the Norwegian Sea, sits under 350 meters of water and is the northernmost offshore oil and gas field to be developed, with recoverable reserves of 750 million barrels of oil and 1.6 trillion cubic feet of natural gas.
  • The partnership has a significant upside to its profitability, with potential sales from the gas cap, increased oil recovery, and future processing revenues.
  • Conoco has found a valuable partner in Statoil, with whom they have collaborated on international projects such as a heavy oil project in Venezuela and an oil refinery in Malaysia.

Statistics:

  • The Heidrun TLP cost NOK 26.4 billion (US $4.2 billion) to develop.
  • The platform is expected to reach a plateau oil production rate of 200,000 barrels per day in the first quarter of 1996.
  • The field has recoverable reserves of 750 million barrels of oil and 1.6 trillion cubic feet of natural gas.
  • The partnership expects to transport oil to shore using a direct tanker shuttle loading system.
  • The methanol plant, owned by Statoil and Conoco, will be Norway's first mainland industry development utilizing natural gas transported to shore by pipeline.

Sources:

  • "Conoco Announces First Oil Production from Heidrun Tension Leg Platform" (Business Wire, Oct. 18, 1995).
  • "Heidrun Field Development Planned" (Conoco, 1989).
  • "Conoco Norway President Discusses Heidrun Field Development" (Conoco, Oct. 18, 1995).

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