During Aker companies investor day 2016 at Fornebu on Tuesday, Det norske CEO Karl Johnny Hersvik revealed that the oil company has awarded a subsea contract for christmas trees to Aker Solutions for Alvheim field, Det norske’s core area of production.

In addition, Subsea 7 has been awarded a contract for SURF services.

Hersvik told that the contracts for Aker Solutions and Subsea 7 are worth over NOK 2.7 billion (approximately $333 million), and will cover a firm scope of the already decided subsea tie-ins on Alvheim, as well as the frame contract for the next 4 years.

New Alliance Model

Hersvik also unveiled a new alliance model, which will be piloted on this project, where Det norske and the contractors would work together as one integrated team with common KPIs and incentives. The alliance partners will develop a budget and share both cost and gains.

“The values of the contract indicate that we are well on our way to achieving the target, and I’m even more enthusiastic to see the tremendous energy put into the alliance model and the collaboration model by the two contractors we are going to work with. I feel confident that this will be an excellent benchmark for subsea contracts on the Norwegian Continental Shelf,” said Hersvik.

Aker Solutions’ CEO Luis Araujo confirmed the news when he gave a presentation right after Det norske’s CEO.

Subsea World News Staff