TechnipFMC awarded assignments worth up to NOK 1.8 billion

June 23, 2020 08:02 CEST | Last modified June 23, 2020 08:06 CEST
Photo of the Snorre A platform
The Snorre A platform in the North Sea. (Photo: Bo B Randulff - Even Kleppa / Equinor ASA)

On behalf of the license partners, Equinor has awarded two contracts and issued a letter of intent to TechnipFMC for pipelaying and subsea installation for three projects on the Norwegian continental shelf (NCS).

The projects in scope are Breidablikk and the Gas Import System for the Snorre Expansion Project, for which contracts have been awarded, and Askeladd Vest, for which a letter of intent has been issued. The Breidablikk contract has subsea installation as an option.

The total value of the three assignments, including the option, is about NOK 1.8 billion.

“We are pleased to award TechnipFMC new large assignments within pipelaying and subsea installation on the NCS. Giving three assignments to the same supplier enables efficiency gains and cost savings. It will also allow for a coordinated follow-up of the total delivery during the implementation phase. This creates value for all parties”, says Peggy Krantz-Underland, Equinor’s chief procurement officer.

Photo of Peggy Krantz-Underland
Peggy Krantz-Underland, Equinor’s chief procurement officer. (Photo:Christian Djupvik Brandt-Hansen)

The scope of the assignments includes fabrication and laying of pipelines, installation of subsea structures, control cables and hook-up and testing of systems. The offshore operations under the contracts are planned to be carried out during 2021-2023.

The awards contribute to sustaining important workplaces for TechnipFMC in Norway, including the Orkanger spoolbase, where the pipelines will be fabricated before they are reeled onto the installation vessel. The awards are also expected to generate additional work through further sub-contracting to other companies.

“In a challenging period for the industry we aim to continue realizing the full potential of our NCS project portfolio. This must be carried out in close cooperation with our suppliers to ensure that we create value and activity in Norway. It will help sustain jobs in the supply industry and further develop the important competence the industry has built up,” says Krantz-Underland.

The contract award for Breidablikk is subject to a final investment decision and a final regulatory approval. The letter of intent for Askeladd Vest is subject to a final investment decision.

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The Snorre Gas Import System is part of the ongoing Snorre Expansion Project and includes laying of a new 24-kilometre long 12-inch pipeline between the Gullfaks and Snorre fields in the North Sea. The gas will be used as pressure support to improve the recovery rate of the Snorre field. The pipelaying will be carried out in 2021 and remaining marine operations in 2022. The partners are: Equinor Energy AS (operator), Petoro AS, Vår Energi A/S, Idemitsu Petroleum Norge AS and Wintershall Dea Norge AS.

Breidablikk is a large oil discovery on the NCS located north-east of the Grane field in the North Sea. Breidablikk will be developed as a subsea field with a tie-back to the Grane platform. Equinor and partners plan for an investment decision later this year. The partners are: Equinor Energy AS (operator), Petoro AS, Vår Energi A/S and ConocoPhillips Skandinavia AS.

Askeladd Vest is a segment in the Askeladd field that is part of the Snøhvit unit. Askeladd Vest will be drained by depletion via two gas producers. The Askeladd Vest template will be tied back to the already installed Askeladd templates with a pipeline and an umbilical. Equinor and partners plan for an investment decision later this year. The partners are: Equinor Energy AS (operator), Petoro AS, Total E&P Norge AS, Neptune Energy Norge AS and Wintershall Dea Norge AS.