PSA Norway: Jette Development Well Managed

The Petroleum Safety Authority Norway (PSA), the government’s body responsible for safety, emergency preparedness and the working environment in the petroleum activities in Norway, last month carried out an inspection of Det norske’s development of Jette field, located in Norwegian North Sea.

The regulator found nononconformities, and no notifications of orders were issued. The report states that the project is well manned and managed.

Drilling PSA’s supervisory system of audits encompasses all participants in the Norwegian offshore industry, ranging from operating companies and contractors to ship owners. Its regulatory responsibility follows an offshore field or land-based plant through every phase from design and planning, via construction and production, to cessation and removal. This supervisory system provides the PSA with the basis for supervising whether participants ensure their responsibility for prudent management of all phases of their activities.

In the audit of the Jette development, emphasis was on management of project deliveries, follow-up of contractors and the management system related to subsea installations and pipeline systems. In addition, an audit of the management system was carried out.

Four participants from the PSA met with Jette’s project organization and representatives from Det norske’s management in our headquarters on 15 February. The project’s progress, risk management, relationship with contractors and partners, and follow-up of fabrication constituted some of the areas that were audited. No nonconformities related to health, safety and environment requirements were identified.

In its report, the PSA concludes that ”the project appears to be well manned and managed. There are important issues related to the short implementation period, which might prove challenging with regard to follow-up of all verification items in the inspection and test plan. This is highly prioritized by the operator”.

Gudmund Evju, the Project Manager of Jette is pleased with the results of the audit report:

“We are very positive to the supervisory activities of the PSA. Their activities ensure that the organization maintains continuous focus on our own plans as well as the authority requirements. The Jette development is Det norske’s first own-operated field development – now we have received confirmation stating that we are headed in the right direction.”

First oil in 2013

Jette contains about 14 million barrels of oil equivalents, based on a 30 percent recovery rate. Daily production during the first year will constitute approximately 14 000 barrels. The estimated development costs of Jette amount to approximately 2.5 billion NOK. Given the current oil price, Jette may generate gross revenues amounting to 8 billion NOK.

Operational costs are lower compared to typical operating costs of stand-alone developments, thus enhancing the profitability of the development. Production is scheduled to commence during Q1 2013. Det norske has secured financing for the development of Jette.

The field will be developed and operated from Det norske’s headquarter in Trondheim, whereas day-to-day operations will be followed up by ExxonMobil. Det norske’s partner in the Jette development is Petoro.

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Offshore Energy Today Staff , March 14, 2012