Statoil and ABB are to work together to develop solutions for subsea electrical power transmission, distribution, and power conversion systems, aimed at projects in water depths of up to 3,000 m (9,843 ft) and covering long distances.

In some cases such solutions could save up to US $500 million in capital expenditures on certain projects, they claim. The two companies have signed an agreement in the form of a cost-shared joint industrial program (JIP) to be led by the Norwegian operator on behalf of other participating oil companies. ABB will be the technology developer. The total cost for the program, which will last for an initial five years, is $100 million, including ABB funding.

The deal follows a large subsea electrification study executed jointly by Statoil and ABB last year.

“The JIP will develop technologies needed to provide electrical power to subsea pumps, electrical submersible pumps and subsea gas compressors for projects on the Norwegian continental shelf, in the Gulf of Mexico and other places around the world,” said Karl Johnny Hersvik, Statoil’s senior vice president for research, development and innovation.

Hersvik added that subsea pumping and gas compression not only contribute towards improved recovery rates and reduced production costs, but also act as a deepwater production enabler. “A cost-efficient and reliable power supply system is a key element for Statoil’s ‘subsea factory’,” he said.

Subsea electrical power distribution enables supply of all electrical loads using one single power cable, cutting the investment cost of the electrical system compared to existing solutions, which require one dedicated cable for each consumer (pump or compressor), said Statoil. Cables constitute a major cost driver for subsea processing systems, and cable cost can be significantly reduced by subsea power distribution.

The company pointed out that the cost reduction obviously depends on distance and required electrical power, but for example, it highlighted that in a case with eight consumers and a distance of 200 km from infrastructure, the electrical power distribution solution would reduce capital expenditures by more than $500 million.

The technology will also enable the transmission of electrical power over long distances, it added, a key aspect in the likely development of remote fields in areas such as the Arctic.

ABB added in a separate statement that the JIP will provide solutions for transmission of electrical power up to 100 megawatts (MW) over a distance of 600 km.

It also added that to ensure compact and reliable solutions, the equipment will be enclosed in liquid-filled, pressure compensated tanks, with components tested extensively under the full pressure they will experience at the target water depth. The program entails material and component qualification, detailed design and full-scale testing of a 36 kilovolt (kV) distribution unit and two variable speed drives for pump and gas-compressor applications, respectively.