The first contract has been awarded for a new long-distance, NKr14.8Bn (US$1.45Bn) subsea gas project in Norway
Equinor has contracted Aibel to undertake extensive modifications to a floating production platform in the Norwegian Sea as it prepares to tie in a new gas field to extend exports for another decade.
Aibel has won an engineering, procurement, construction, installation and commissioning (EPCIC) contract for retrofitting the Aasta Hansteen production platform in the Arctic area of the Norwegian Sea.
This comes after Equinor submitted a plan for development and operation (PDO) of the Irpa gas discovery, formerly known as Asterix, to the Norwegian Ministry for Petroleum and Energy in November 2022.
Its project would involve installation of subsea production infrastructure and long pipelines in the deep waters of the Norwegian Sea to link Irpa to Aasta Hansteen.
Aibel said its contract was valued between US$145M and US$245M and would be managed from its Stavanger office, while module fabrication for the platform would be undertaken in its yards in Haugesund, Norway and Thailand. These modules would need to be lifted on to the platform using a heavy-lift vessel in 2025-26.
The Irpa project, including contract awards for engineering, construction, installation and commissioning of the subsea infrastructure would begin after the Norwegian Government has approved the proposed PDO. The field would be scheduled to come on stream in Q4 2026.
Approval of the PDO would lead to new contract awards for subsea infrastructure, support vessels and well drilling over the next four years. Partners in the Irpa field expect to tie its gas production into the Aasta Hansteen floating processing platform during 2025-26 to provide stable output until 2039.
Gas from Aasta Hansteen is piped to the Nyhamna gas processing plant via the Polarled pipeline, and then to the UK through the Langeled pipeline system.
Equinor said the Irpa discovery would be developed with three wells and an 80-km, thermally insulated pipeline to the Aasta Hansteen platform.
The Irpa gas project is the only planned deepwater development in Norway. Expected recoverable gas resources are estimated at approximately 20Bn m3.
Equinor predicts there would be joint production from Irpa and Aasta Hansteen through to 2031 and then Irpa would continue to produce until 2039.
“The development of Irpa will contribute to predictable and long-term deliveries of gas to customers in the EU and the UK,” said Equinor executive vice president for projects, drilling and procurement Geir Tungesvik.
Equinor senior vice president for exploration and production Grete Birgitte Haaland said there could be further opportunities in the long term for subsea projects in the Norwegian Sea.
“Irpa will maintain existing jobs at Aasta Hansteen, at the supply base in Sandnessjøen, at the helicopter base in Brønnøysund and at the operations centre in Harstad,” she said.
“The development shows that near-field exploration and utilisation of existing infrastructure provides good resource utilisation on the Norwegian continental shelf.”
Equinor project director for the Irpa development solution Hogne Pedersen said the partners would be searching for international specialists able to install subsea infrastructure in ultra-deepwaters.
“During the project period, there will be local and regional deliveries, although the Irpa project is largely dependent on international specialist suppliers who can operate in water depths of 1,350 m,” he said.
“It has been challenging to develop Irpa. Deepwater and low temperatures on the seabed have necessitated the qualification of innovative new technology for pipelines, but good support in the partnership and increased demand for gas have made an investment decision possible,” said Mr Pedersen.
The Offshore Support Journal Conference, Middle East will be held 6 December 2022. Register your interest and access more information here
© 2023 Riviera Maritime Media Ltd.