Shell, the operator of the Ormen Lange gas field in Norway, has decided to postpone the Offshore Compression Project and stop the ongoing concept select work. The licence (including Shell, Petoro (36.49%), Statoil (25.35%), DONG Energy (14.02%) and ExxonMobil (6.34%)) has been working towards a concept select decision for offshore compression, either a subsea compression solution or a tension leg platform solution for Ormen Lange since 2008. The gas field, the second largest in Norway, started production in 2008 and will eventually lose its natural pressure. The subsea compression project was seen as a cheaper alternative to building a new plaform. The decision is based on an updated economic assessment incorporating new cost information for the current concepts and updated analysis of the reservoir. For Shell and its partners (to the exception of Petoro), the current concepts do not provide an economic return based on the required capital investment and expected production volumes. The updated reservoir analysis also shows that offshore compression timing is not critical to the ultimate recovery of the field.