press release

Chevron Press Release - ABB, BP, Chevron and Kvaerner Team Up to Improve Seafloor Processing

New joint evaluation and demonstration project aimed at advancing deep-water field development

NORWAY, Feb. 6, 2001 -- ABB, BP, Chevron Corp. and Kvaerner announced today that they have signed an alliance agreement to perform a collaborative study that will address the challenges associated with advancing seafloor processing technology for deep-water oil and gas reserves. The study is expected to be completed by the end of the first quarter 2001.

Today, technologies for deep-sea production are based around complex and expensive process facilities that are located on the ocean surface. The group will analyze how to develop standardized, modular, compact and remotely operated facilities that would sit on the seafloor and could reduce the operating difficulties, costs and environmental impacts of deep-sea production.

The four multi-national companies believe this unique and cooperative effort will result in accurately defining the level of investment required to close gaps between current technology and the technologies required for seafloor processing in deep water.

The study will be completed by project teams located in Norway, the United Kingdom and the United States and will involve more than 50 people. Initial project work will build on efforts that were started by the oil industry in 1999.

It is anticipated that the result of the study will yield the following benefits to the individual companies and energy industry:

  • New cost effective production facilities that are removable and will have parts that can be reused or recycled.
  • Increased oil recovery over traditional field development options such as floating production storage offloading (FPSO).
  • Spin off technologies in the area of oil and gas treatment that could improve the operation of conventional facilities.
  • Provide the necessary foundation to continue collaboration that could lead to further spending in this area of technology.

Note to Editors:

Currently, oil, water, and gas are sent up from the ocean floor wellhead via pipeline to a floating production storage offloading facility (FPSO) where the separation process occurs. After separating the oil, gas, and water, the clean crude oil is ready for transport via tanker or pipeline, to a refinery for further processing. With seafloor processing, the separation process is handled on the ocean floor and only clean crude is sent up to the ocean surface for further processing.

Deepwater is considered depths that are greater than 1500 meters or 5,000 feet.

About Chevron Corp.

Chevron, headquartered in San Francisco, California, is a leading energy and chemical company, operating in about 90 countries through its 500 subsidiaries, partnerships, affiliates, and other entities. Chevron employs about 31,000 people worldwide.

About BP

BP is of one of the world's three largest petroleum and petrochemicals groups. Main activities are exploration and production of crude oil and natural gas; refining, marketing, supply and transportation; and manufacturing and marketing of petrochemicals. The company has a growing activity in gas and power and in solar power generation. BP employs about 100 000 people in 100 countries in all continents of the world.

About ABB

ABB's worldwide oil, gas and petrochemicals business activities include the companies ABB Lummus Global, ABB Offshore Systems, ABB Soimi and ABB Vetco Gray. The business focuses on systems, products and services for oil and gas drilling both offshore and onshore, the development and supply of offshore production installations, refineries and petrochemical plants worldwide. Approximately 10,000 people are employed in these activities with revenues in excess of US$3 billion in 2000. ABB ( serves manufacturing, process and consumer industries, utilities, the oil and gas sector and infrastructure markets, with 160,000 employees in more than 100 countries.

About Kvaerner

Kvaerner is a world-class Anglo-Norwegian engineering and construction group with the capability and resources to undertake the world's most challenging projects. Today's Kvaerner is an industrial technology provider. The Group's activities are organized in two core business areas: E&C (engineering and construction), and oil and gas. Other current activities, which include shipbuilding and pulping equipment, are to be sold. Kvaerner is a Norwegian registered business, but has a London, UK-based international headquarters. The Group has annual revenues of approximately US$7 billion, with some 35,000 permanent staff located in almost 35 countries throughout Europe, Asia and the Americas.

Updated: February 2001