StatoilHydro engineers are not sure what major change-outs and modifications at two key developments — Statfjord Late Life in the North Sea, and Snoehvit in the Arctic — will cost, according to newspaper Dagens Næringsliv.

Modifications to the Statfjord project involve converting one of the oldest oil platforms offshore Norway into a gas hub for regional fields. The project, however, has helped defer decommissioning costs, as reported in Scandinavian Oil-Gas Magazine.

A NOK16 billion ($3 billion) budget has been blown at Statfjord, the oil company has confirmed, largely by the recently much higher cost of changing out old steel with new and getting busy contractors to do the work. In total, some NOK3 billion ($560 million) extra might be needed, although the so-called Tampen Link to U.K pipeline infrastructure appears finished.

At the NOK58-billion Snoehvit project, Scandoil.com reported through the New Year of problems keeping the world’s northernmost liquefied natural gas plant at just half capacity.

With long-term gas contracts to meet, a heat-exchanger problem that could costs tens of millions of dollars to fix could also prevent full production for another 18 months.

Scandoil.com affiliate Scandinavian Oil-Gas Magazine will visit the plant again in a few weeks.

ws@scandoil.com

Tags: Snoehvit, Statfjord, StatoilHydro