Subsea 7 wins offshore contract from OneSubsea

Subsea 7 has secured a contract for front-end engineering design (FEED) study for the subsea umbilicals and flowlines system of the Ormen Lange Field.

The deep-water natural gas filed is operated by Norske Shell and located 120km off the coast of Norway in the Norwegian Sea.

The contract was awarded by Schlumberger’s subsea technologies, production and processing systems division OneSubsea. OneSubsea was awarded an engineering, procurement, construction and installation (EPCI) contract to deliver a subsea multiphase compression system to the Ormen Lange Field.

A positive final investment decision (FID) will be taken by Norske Shell and partners, Petoro, Equinor, INEOS and ExxonMobil.

According to the company, work under the contract will be performed as a ‘Subsea Integration Alliance’ project. Once the FID is finalised, the sizeable contract, according to Subsea 7, is expected to be valued between $50m to $150m.

Subsea 7 Norway vice-president Monica Bjørkmann said: “This award is an important demonstration of the value Subsea Integration Alliance brings by combining the technologies and capabilities of OneSubsea and Subsea 7 into a seamless integrated offering, resulting in the delivery of optimised solutions, with reduced execution and interface risk.

“This compression tieback project builds on the Subsea Integration Alliance integrated boosting tieback packages supplied to Taqa Otter in the North Sea and Murphy Dalmatian in the Gulf of Mexico.”

OneSubsea’s compression system will be installed at 850m below water. It consists of two 16MW subsea compression stations connecting existing manifolds and pipelines The compression system will be powered and controlled from the Nyhamna onshore gas processing plant, which is located 120km from the subsea location.

Source: Offshore Technology