Aker Solutions and MAN Diesel & Turbo have revealed plans to cut the size and weight of subsea compression systems by “at least 50%,” with the new generation system capable of bringing many medium- and small-sized gas fields into the realm of economic viability.

Knut Olaf Nyborg, head of Advanced Subsea Systems at Aker Solutions, told SEN that the company was buoyed by the fact that the Åsgard subsea compression system has been operating uninterrupted for 14 months, which he said was “quite unique even for conventional topsides compression cases.”

In essence, this showed Aker Solutions that its design stage was sufficiently comprehensive to enable the Åsgard subsea compression system to cut out any major unforeseen challenges that could have interrupted operations.

“If there are any doubts we like to come down on the side of common sense. This can keep downtime limited,” Nyborg said. This approach seems to have worked as desired for Åsgard so far.

“We now have a good starting point to decide where to cut down size, weight and cost for the next subsea compression system,” he added.

In terms of when the latest system will be ready, Nyborg said “the next generation system is built on a detailed FEED design—already ready for project. Some minor verification remains, but this is of limited scope and risk.”

Lead Engineers Are Key

Aker Solutions has kept the same lead engineers who worked on Åsgard to tackle the next stage of subsea compression system development. These same engineers kept substantial notes as the Åsgard project developed, which included ideas for future models.

All of this collective knowledge and data will allow Aker Solutions to “pick the low hanging fruit” in terms of deciding the best way to trim weight and size of the next subsea compression system.

A 50% smaller and lighter system will offer the same high capacity as today’s Åsgard subsea compression system. It will also make subsea compression systems an attractive option for operators of medium and smaller gas fields. The cost reduction would make subsea compression a more cost-effective option when compared to concepts such as production platforms.

Aker Solutions has been careful to make sure its design phase is thorough and detailed so when it comes to designing the next subsea compression system it is a case of improving and simplifying rather than having to create whole new technologies and system designs, Nyborg said.

Subsea compression systems are inherently cheaper than production platforms as well as safer and more environmentally friendly, he added.

‘Fundamental Shift’ In Perception

Nyborg also noted that during meetings with operators during the last three to four years, he has noticed “a fundamental shift in perception and attitude” toward use of subsea compression systems.

This shift has been from considering them “just interesting” to being a concept that is “both selectable and deployable” on fields that companies are considering for development.

Another improvement outside of the system itself is to find cheaper power solutions because the cost of transferring power to the subsea systems is an area that could offer savings, Nyborg added.

“Together with MAN we’re taking this technology further to deliver slimmer and lower cost compression systems without compromising on effectiveness,” said Aker CTO Hervé Valla.

Aker Solutions and MAN joined forces in October 2015 to build on their experience from Åsgard and their extensive oil and gas industry expertise. The partnership expects to reduce the size and weight of future systems by at least half, greatly lowering investment and installation costs, MAN said.

The next generation of subsea compression systems also will aim to make “major improvements in both the recovery rate and lifetime for a number of gas fields,” said Basil Zweifel, head of oil and gas upstream at MAN Diesel & Turbo in Zurich.

“Aker Solutions and MAN will provide reliable compression systems for use at small subsea fields as well as large deposits such as Åsgard.”

The Åsgard system will help to recover an additional 306 MMboe more cost-effectively, safely and with a smaller environmental footprint than a traditional platform, Aker stated. Aker Solutions delivered the system in close collaboration with partners, including MAN and Statoil.

Aker Sees Revenue Dip

In all, Aker Solutions said it “continued to make good progress on major projects globally” in third-quarter 2016, while “pushing forward on improvement efforts that supported margins” despite revenue and order intake being down on third-quarter 2015 figures.

“We delivered another quarter of strong execution and operational improvements, maintaining steady margins amid continued industrywide challenges,” said Aker Solutions CEO Luis Araujo. “Our solid finances, streamlining efforts and good customer relationships will benefit us now and when the market recovers.”

“The outlook for oil services remains challenging and projects are being postponed across the industry,” Aker Solutions said. However, “there are some signs of a recovery, primarily in the brownfield segment, amid expectations that oil prices will stabilize at a higher level in 2017.

“Industry cost cuts are having an effect, with break-even costs coming down on projects, which may allow some major developments to be sanctioned in the next 12 months.”

‘Well Placed’ In Subsea Market

The company added that it is “is well-placed in key growth regions of the global deepwater and subsea markets to provide the capabilities and technology to tackle the challenges of lowering costs and improving recovery rates.

“In subsea, Aker Solutions targets a move over time toward peer-group margins and a return on average capital employed (ROACE) of 20% to 25% in the medium term. The ROACE in the third quarter was 8% and 11.4% excluding special items,” Aker added. “Margins in field design are expected to gradually improve, with the biggest movement in [maintenance, modifications and operations]. The company expects to at least maintain its market share in all business areas.”

—Steve Hamlen