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Letter of intent – reeled pipe installation

July 17, 2006, 10:30 CEST

Statoil has signed a letter of intent with a consortium consisting of Technip Offshore Norge AS and Subsea 7 Norway NUF for reeled pipe installation services on the Norwegian continental shelf.

The letter of intent relates to a 2-year framework contract for reeled pipe installation services. The value of the contract is estimated at NOK 1.6 billion, provided that the project commitments as per contract award are sanctioned. Work at a value of NOK 300 million has so far been approved on the Åsgard field in the Norwegian Sea.


The main vessels to be used under the contract are Apache (above) and Skandi Navica.

”The flowlines are fabricated onshore, welded together and spooled onto a vessel-mounted reel. This method is time and cost-effective during the installation of up to 16-inch pipelines on the seabed,” says Ove Grunde Eikeland, commercial coordinator for Technology & projects.

The contract covers project management, engineering, fabrication and installation of reeled pipe applications for 2007 and 2008.

The consortium is based on a 50/50 split between Subsea 7 and Technip Offshore Norge.

The management and engineering work will be performed both at Technip’s offices in Stabekk outside Oslo and Subsea 7’s offices in Stavanger. The fabrication of flowlines will take place at the spool bases in Orkanger in Mid-Norway (Technip) and at Gaupne in Mid-Norway (Subsea 7).

The main vessels to be used under the contract are Technip’s Apache and Subsea 7’s Skandi Navica. In addition several construction vessels will be utilised for offshore installation activities on the Åsgard field.