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Audit of Norsk Hydro - Ormen Lange pipeline

During the period 10 June - 29 September 2005, we conducted an audit of Norsk Hydro Produksjon a.s relating to compliance with regulatory requirements and project-specific requirements established in connection with engineering and preparation for installation of 30" pipelines for Ormen Lange. We have not found any nonconformities in this audit, but we did identify certain areas with potential for improvement.


Ormen Lange pipelines30" pipeline

The wellstream from the Ormen Lange field will be routed through two 120-km long 30" pipelines to Nyhamna.

Norsk Hydro is operator of Ormen Lange in the development phase, which includes development of the field, the gas processing plant in Nyhamna as well as the export pipeline project.

Background for the audit

Central priorities for our HSE supervision are to follow up to ensure that the players facilitate and maintain the technical integrity of the facilities, as well as to contribute to the transfer of experience between the players.

Furthermore, it is one of the PSA's performance measures to contribute to minimizing costs related to the risk of material damage and unintentional disruptions in operations.

In connection with our consideration of the Plan for Development and Operation (PDO) for Ormen Lange, we identified several areas that require continued follow-up. Installation of 30" pipelines using the J-laying technique in deep waters and with a very rough seabed was one of these areas.

Link:On topography on the seabed and J-laying (Hydro's web site)

Purpose of the audit

The purpose of this audit was to verify that Hydro and Saipem are complying with regulatory requirements and the project's own requirements established in connection with engineering and preparation for installation of 30" pipelines for Ormen Lange.

A partial goal has been to determine how Hydro fulfills its responsibility to supervise Saipem, as a supplier to the Ormen Lange project.

Result of the audit

Our main impression is that the project has established and implemented a satisfactory management system for this part of the development project.

We have not found any nonconformities in this audit, but we did identify some areas with potential for improvement.

Handling interfaces, recording risks, nonconformity procedures, verification plan, transfer of experience, design reviews as well as the project's own audit are the areas where potential for improvement was identified.

Contact in the PSA:
Mike Theiss