Aker Solutions has won a string of contracts worth more than US$350M for major offshore projects in Norway
Contracts have been awarded for offshore, subsea and onshore projects in Norway, firming up Aker Solution’s energy business.
This includes engineering and subsea installations of a wet gas subsea compression system, CO2 receiving facilities, Europe’s biggest offshore oil field and an incremental mid-water gas project.
The latest of these contract awards is for integrating the subsea compression system at Norske Shell’s Ormen Lange processing plant in Nyhamna, in mid-Norway.
This Nkr600M (US$63.3M) contract will involve engineering, procurement, construction and installation of a 500-tonne module, which will be fabricated at Aker Solution’s yard in Egersund, Norway.
This project is scheduled for completion in 2024 and will extend offshore services to Norwegian Sea gas fields and gas exports for another two decades.
On 17 December, Aker Solutions announced it secured contracts from Equinor to enable new CO2 receiving facilities, Northern Lights, outside Bergen. This award includes delivering subsea equipment for injecting captured CO2 into a reservoir for permanent storage. This is a new type of subsea project for Aker, and potentially the start of a trend in work for offshore construction support vessels.
Northern Lights is part of the Norwegian Government’s Longship project to establish full-scale CO2 capture, transport and storage facilities, in line with the nation’s international climate agreements.
Aker Carbon Capture will manage this project. Aker Solutions gained Nkr1.3Bn (US$145.6M) of contracts for a proposed CO2 capture facility at Norcem’s cement factory in Brevik.
CO2 captured from the cement manufacturing process in Brevik could be transported by ship to the new receiving terminal in Øygarden outside Bergen. Here, CO2 would be stored intermittently before being piped out to the North Sea to be injected into a sub-surface geological structure.
The subsea segment of Aker Solution’s contract, valued at Nkr250M (US$28M), involves engineering, procurement and construction of subsea equipment for Equinor, with installation anticipated in 2023. The scope includes delivering one subsea tree, one wellhead, one flow base and control systems. The contract also includes options for equipment for future wells.
On 16 December, Aker Solutions secured a contract for hook-up and commissioning assistance on another platform for the huge Johan Sverdrup field, which is one of the world’s largest offshore oil and gas developments. The contract is part of a second phase of development on this North Sea field, with the new installation being a second processing platform.
In the Norwegian Sea, Aker Solutions will deliver a subsea production system to the Kristin Sør oil and gas satellite fields under a Nkr1Bn (US$111.5M) contract.
Workscope includes delivering a subsea template with four vertical subsea trees for the centre of the Lavrans field and a manifold for the Kristin Q field. Installation work is scheduled for 2022 to mid-2023.
These contracts come as the Norwegian parliament has authorised the Ministry of Trade, Industry and Fisheries to execute the dissolution of the joint ownership of Aker Kvaerner Holding.
This will see Kvaerner absorbed into Aker Solutions in which the Ministry of Trade, Industry and Fisheries will become a large shareholder.
At the same time Aker Offshore Wind and Aker Carbon Capture shares held by Aker and by Aker Kvaerner Holding will be transferred to Aker Horizons, 100% owned by Aker.
Offshore projects and vessel operations will be discussed during Riviera’s Offshore Webinar Week, from 19 January 2020 - use this link to view further details and to register for these webinars