Hess Denmark, a subsidiary of US-based Hess Corporation, has awarded a contract to DNV GL, an international certification body, and classification society, for asset integrity inspection management of its South Arne field in the Danish North Sea.
Hess said on Wednesday that the deal includes risk-based inspection (RBI) services and non-destructive testing (NDT) inspection services.
This contract further extends the 18-year cooperation between the two companies.
The company said that the asset integrity inspection assessments will address the process systems using pressure-retaining equipment and piping as well as the concrete gravity base and tower. Furthermore, inspection services provided by DNV GL will encompass the topside and subsea steel structures and the oil export pipeline and offloading buoy.
Kjell Eriksson, the regional manager for Norway of DNV GL – Oil & Gas, said: „DNV GL has been contracted to provide integrity inspection on the South Arne field since 1998. The renewal of this partnership demonstrates the importance of high-quality service delivery in a cost-pressured market. Further, the contract shows Hess’s confidence in DNV GL’s ability to deliver efficient solutions which can help manage operation costs for the South Arne field.“
The contract has an estimated annual value of 10 MDKK ($1.5 million) and is based on both KPI, lump sum, and rate-based remuneration principle.
South Arne, located 150 miles west of Esbjerg in the Danish North Sea, was discovered in 1991 and has produced oil and gas since 1999. In 2015 net production was 13,000 barrels of oil equivalent per day. Hess is the operator of the field with 61.5 percent interest with DONG and Danoil having 36.8 and 1.7 percent interest respectively as partners.