Norwegian energy company Equinor has awarded two contracts and issued a letter of intent to subsea technology provider TechnipFMC for pipelaying and subsea installation for three projects on the Norwegian continental shelf (NCS)
Total value of the three assignments, including the option, is about Nkr1.8Bn (US$190M).
The projects in scope are Breidablikk and the gas import system for the Snorre Expansion Project, for which contracts have been awarded, and Askeladd Vest, for which a letter of intent (LOI) has been issued. The Breidablikk contract has subsea installation as an option.
Equinor chief procurement officer Peggy Krantz-Underland said, “Giving three assignments to the same supplier enables efficiency gains and cost savings. It will also allow for a co-ordinated follow-up of the total delivery during the implementation phase. This creates value for all parties.”
The scope of the assignments includes fabricating and laying pipelines, installing subsea structures, control cables, hooking up and testing systems. The offshore operations under the contracts are planned to be carried out during 2021-2023.
The awards contribute to sustaining important workplaces for TechnipFMC in Norway, including the Orkanger spoolbase, where the pipelines will be fabricated before they are reeled onto the installation vessel. The awards are also expected to generate additional work through further subcontracting to other companies.
“In a challenging period for the industry we aim to continue realising the full potential of our NCS project portfolio,” said Ms Krantz-Underland. “This must be carried out in close co-operation with our suppliers to ensure we create value and activity in Norway. It will help sustain jobs in the supply industry and further develop the important competence the industry has built up,” she added.
The contract award for Breidablikk is subject to FID and final regulatory approval. The LOI for Askeladd Vest is also subject to FID.
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