August 15, 2005 13:54 ET

Roxar Wins US$7.5 Million Contract to Supply Wet Gas Meters to Independence Hub Development in Gulf of Mexico

Wet Gas Meters to Detect and Measure Hydrocarbon Flow Rates, Water Production and Flow Assurance Input From World's Deepest Subsea Development Wells

STAVANGER, NORWAY -- (MARKET WIRE) -- August 15, 2005 -- Roxar, a leading technology solutions provider to the upstream oil and gas industry, today announced that it has won a contract to supply its industry-leading Wet Gas Meters and Sand Monitoring System to the Independence Hub Development in the Gulf of Mexico, which, once in operation, will be home to the deepest development wells in the world.

Roxar's Wet Gas Meters were selected by Anadarko Petroleum Corporation and Dominion Exploration and Production Inc, due to their ability to accurately detect and measure real-time hydrocarbon flow rates and water production as well as flow assurance input through the meters' online detection of formation water being produced from the wells.

Anadarko has also selected Roxar's new Sand Monitoring System to be included in their subsea system design. Roxar's latest Sand Monitoring Systems will tie into the Wet Gas Meter, thus significantly reducing subsea integration issues and improving prediction of sand production rates.

The formation water detection function in the Wet Gas Meter is an important input parameter for controlling hydrates, corrosion and scale in a subsea production system. This is particularly important for the Independence Hub Development and its deepwater wells, where hydrate formation is seen as the largest risk to production integrity at such depths.

The Independence Hub development is a joint venture consisting of Anadarko Petroleum Corp. (who operate the Independence Hub platform); Dominion Exploration & Production, Inc.; Kerr-McGee Oil & Gas Corp.; Spinnaker Exploration Company.; and Devon Energy Corp.

Located 165 miles east of New Orleans and in 8,000 feet of water, the Independence Hub will process production from ten natural gas fields located in the Mississippi Canyon Block 920. The fields, in water depths between 8,000 and 8,950 feet with the longest tie back being in excess of 45 miles, will operate the deepest development wells in the world. Roxar's metering and allocation equipment will be applied at the deepest subsea levels the oil and gas industry has ever seen.

In addition, the ten field developments will have different ownership interests and potential for different royalty rates, requiring Roxar's Wet Gas Meters to provide accurate subsea measurement and allocation and be fully integrated within the subsea production system. Previous operational experience in the Gulf of Mexico by others has shown the Roxar Wet Gas Meter to be an accurate measurement and allocation platform when properly configured and maintained.

Said Bob Buck, Senior Engineer, Worldwide Deepwater Operations, Anadarko: "Producing high gas fraction wells at these water depths requires the very best in flow assurance monitoring of individual fields and wells to ensure that hydrate formation does not affect production integrity. Following a long and exhaustive evaluation process, we opted for Roxar's Wet Gas Meters -- a world class wet gas metering system for a world class project. We look forward to a long and successful relationship."

His words were backed up by Roxar CEO, Sandy Esslemont: "Whether it be production well testing, improved reservoir management, production allocation or hydrate and corrosion prevention, accurate measurement of wet gas flow is crucial for the operators of wet gas producing fields. Through Roxar's Wet Gas Meters, we are confident that we can contribute to increased productivity in this development, positively impact cash flow for all partners and provide an accurate subsea flow assurance and allocation system."

He continues: "The integration of our new sand monitoring system also gives the operator important information to control sand production and to predict erosion rates, without having the added burden of integrating a separate monitoring device subsea."

The Independence Hub Facility has a 160-foot tall, semi-submersible hull with a two-level production deck and is capable of processing 850 million cubic feet of gas and 4,250 barrels of condensate per day. The platform, operated by Anadarko, will initially process production from ten fields made up of the Spiderman, San Jacinto, Jubilee, Vortex, Cheyenne, Merganser, Atlas NW, Mondo NW and Q developments.

Roxar's Wet Gas Meters are the latest in wet gas metering technology, providing real-time accurate flow rates and extremely sensitive and accurate water fraction measurements as well as optional online detection of formation water breakthrough.

The Roxar Wet Gas Meter is the only available meter with online and direct measurement of water in a wet gas flow. This unique functionality allows direct measurement of water at an early stage as soon as it starts to be produced from the well. This information is valuable for reservoir management, for flow assurance and for optimizing the production process. The meter can also distinguish between condensed water and saline formation water so that early remedial action can be initiated.

Roxar creates value for its customers through its Reservoir Interpretation, Reservoir Modeling, Reservoir Simulation, Well and Completion, Production and Process Solutions and Consultancy Services.

Roxar is a world-class provider of robust flow measurement instrumentation. As well as Wet Gas Meters, the Production and Process Solutions portfolio includes Multiphase Flow Meters, WaterCut Meters, Flare Gas meters and Pig Detectors.

Note to Editors

About Roxar

Roxar is a leading international technology solutions provider to the upstream oil and gas industry. The company creates value for its customers through innovative products and services that help achieve maximum performance from oil and gas reservoirs.

With its head offices in Stavanger, Norway, Roxar employs close to 500 staff across a network of wholly owned offices in Europe, the Americas, Africa, CIS, Asia Pacific and the Middle East. Founded in May 1999, the company generated revenues of approximately US$100 million in 2004. Roxar's International customer base includes all of the multinationals, major independents and the majority of national oil companies.

Contact Information

  • For Further Information:

    Sandy Esslemont (USA)
    CEO, Roxar Group
    Tel: +1 713 482 6439
    Email: Email Contact

    Ådne Grødem (Europe)
    CFO, Roxar Group
    Tel: +47 51 81 88 23
    Email: Email Contact

    Gunnar Hviding
    Managing Director
    Roxar Flow Measurement
    Tel: +47 51 81 88 75
    Email: Email Contact

    Svenn Haugen
    Group Marketing Manager
    Tel: +47 51 81 88 00
    Email: Email Contact

    Jeanette Halford
    Marketing Operations Manager
    Tel: +44 (0) 208 971 4000
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    Paul Fisher
    Axiom Communications Management
    Tel: +44 (0) 1285 713 776
    Fax: +44 (0) 1285 713 071
    Email: Email Contact