ODIM wins workover system order worth NOK 147 million

(Hareid/Stavanger – 28 September 2009): ODIM has been awarded a NOK 147 million contract by Talisman Energy Norge to develop and build a workover rig for the Yme field in the North Sea, with delivery in June 2011.

(Extended press release from ODIM ASA and Talisman Energy Norge AS): “I’m very pleased to announce that ODIM JMC in Stavanger has been chosen by Talisman to develop and build this unit for use on a jack-up facility,” says acting chief executive Arild Hatløy. The workover rig has been specially developed for recompletion work, which involves servicing and replacing submerged pumps used to stimulate the flow of fluids in production wells. “We’re an experienced supplier of niche products in the well service field, focusing on simple and compact solutions for secure operation,” explains Helge Hustoft, managing director of ODIM JMC. “Our aim is to achieve a leading niche position with systems which can be used for well intervention from drilling rigs and service ships.” He believes that the need for such solutions is growing sharply. Improved oil recovery (IOR) from existing fields is set to account for a steadily increasing proportion of future oil output, which calls in turn for reservoir stimulation with intervention tools. As part of the commitment being made to its Subsea & Deepwater Installation business area, ODIM’s strategy is to offer complete handling systems for such operations. The company has extensive experience as a sub-contractor for well service equipment, and has utilised this expertise to develop complete systems. Yme will become the first Norwegian field to be re-opened after an earlier shut-down. Originally on stream in 1996, it was abandoned in 2001 as a result of production problems and low oil prices. Talisman Energy Norge has taken over as operator and is planning to recover roughly 60 million additional barrels of crude over a 10-year period. Plans call for the field to be produced from a jack-up unit standing on a seabed storage tank, with oil due to start flowing in 2010. Talisman won the Norwegian Petroleum Directorate’s IOR prize in 2007 for its commitment to marginal and mature fields which others do not regard as sufficiently profitable. The company had thereby helped to create added value for Norway, the NPD noted in its award citation with reference to the Yme field.