Subsea 7 to carry out FEED study for subsea project in Norwegian Sea
A/S Norske Shell, which operates the Ormen Lange Field, awarded OneSubsea an engineering, procurement, construction and installation (EPCI) contract to supply a subsea multi-phase compression system.
Under this contract, Subsea 7’s scope included FEED, which will proceed to execution phase in the case of a positive final investment decision (FID) for the project by A/S Norske Shell and its partners, which include Petoro, Equinor, INEOS and ExxonMobil.
The work will be carried out as a Subsea Integration Alliance project, a strategic global alliance between Subsea 7 and OneSubsea, which brings together field development planning, project delivery and total lifecycle solutions under one technology and services portfolio.
The value of the contract will be recognised following FID; assuming FID is reached, it will be equivalent to a sizeable project award for Subsea 7 – defined by the company as between $50 million (€44.8 million) and $150 million (€134.5 million).
The subsea multi-phase compression system provided by OneSubsea will be installed at a water depth of 850m and comprises two 16MW 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 120km 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.
“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,” commented Monica Th. Bjørkmann, Subsea 7’s vice-president, Norway. “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.”