Market Characteristics
Norway: Exploration and development activities began in the southern part of the Norwegian Continental Shelf in the 1960s. Subsea developments started out as tie-backs to existing platforms, which is still the case for smaller developments
However, dedicated floating units (FPSO, semi, etc.) as hosts, have become more prevalent for new and stand-alone developments and are solutions for greater water depths. For gas fields, "subsea to shore" developments have become attractive. Such is the case with the StatoilHydro Ormen Lange which utilizes this solution in 800 to 1,000 m (2,625 to 3,280 ft) water depth and 120 km (75 miles) from shore.
Due to maturity of the region, many operators have been focusing their resources on increasing recovery rates from existing fields and implemented subsea tie-backs for marginal new fields to existing platforms and floating facilities. Subsea separation, boosting and water injection techniques are also becoming more widely adopted to increase field recovery rates. FMC is providing leading technology in this area, and manufactured the first commercial application of a full-scale subsea separation system for StaoilHydro in June 2007, brining the Tordis field's recovery factor from 49% to 55 %.
UK: The United Kingdom subsea region can be segmented into three distinct geographical areas. First is the southern shallow-water section, which is predominantly natural gas, with water depth ranging from 30 to 75 m (100 to 250 ft). Second is the Central North Sea, comprising of reserves of both oil and natural gas, with water depth between 75 and 200 m (250 to 400 ft). The third area is the northern sector of the North Sea, which encompasses harsh environments with water depth over 200m (550 ft).
Most developments are small subsea tie-backs to fixed platforms. Exceptions include the CNR Kyle, ConocoPhillips Banff, and Shell Pierce fields that are all tied back to FPSO units.
FMC Technologies holds frame agreements with Talisman, CNR and Oilexco, all of whom have significant interests in the UK.