Subsea 7 has been awarded a front-end engineering design (FEED) study by OneSubsea, a division of Schlumberger, for the subsea umbilicals and flowlines system of the Ormen Lange field, operated by A/S Norske Shell.
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.
Subsea 7 has already recognized the value of the engineering studies in its Order Backlog. The value of the execution contract will be recognized after FID, following exercise of the option. Assuming FID is reached, it will be equivalent to a sizeable project award for Subsea 7, being between USD 50 million and USD 150 million.
The subsea multiphase compression system provided by OneSubsea will be installed at 850 meters 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 120km from the subsea location.
Monica Th. Bjørkmann, Subsea 7’s vice president Norway, said, “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 optimized 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.”