Subsea 7 awarded FEED contract offshore Norway

Source: press release, 31 October 2019

‘Seven Falcon’ is one of the most advanced diving vessels in the world
‘Seven Falcon’ is one of the most advanced diving vessels in the world (photo: Subsea 7)

Subsea 7 has announced an award by OneSubsea®, the subsea technologies, production and processing systems division of Schlumberger, a front-end engineering design (FEED) study for the subsea umbilicals and flowlines system of the Ormen Lange Field, operated by A/S Norske Shell, in the Norwegian Sea.

A/S Norske Shell awarded OneSubsea an engineering, procurement, construction and installation (EPCI) contract to supply a subsea multiphase compression system. Subsea 7’s scope under this contract includes front-end engineering design (FEED), which will proceed to execution phase in the case of positive FID by A/S Norske Shell and its partners, Petoro, Equinor, INEOS and ExxonMobil. The work will be executed as a Subsea Integration Alliance project, a strategic global alliance between Subsea 7 and OneSubsea®, the subsea technologies, production and processing systems division of Schlumberger.

Subsea 7 has already recognised the value of the engineering studies in its order backlog. The value of the execution contract will be recognised after FID, following exercise of the option. Assuming FID is reached, it will be equivalent to a sizeable project award for Subsea 7.

The subsea multiphase compression system provided by OneSubsea will be installed at 850 metres of water depth and consists of two 16-megawatt subsea compression stations tied into existing manifolds and pipelines. Power supply and control will be provided by the Nyhamna onshore gas processing plant, which is located 120 kilometres from the subsea location. Once the subsea multiphase compression system is installed, the tieback distance will represent a world record for transmitting variable speed power from shore to seabed.

Monica Th. Bjørkmann, Subsea 7’s Vice President Norway, says, “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.”

Note: Subsea 7 defines a sizeable contract as being between USD 50 million and USD 150 million.