Aker BP ASA granted Subsea 7 SA and Aker Solutions ASA contracts for the second phase of the Ærfugl gas field development offshore Norway.
In a Dec. 12 release, Subsea 7 said that it was granted a sizeable engineering, procurement, construction and installation contract, which covers a long-distance tie-back using its proprietary Electrically Heat Traced Flowline, or EHTF, technology from the subsea location to the existing Skarv infrastructure.
Project management and engineering will start immediately from Subsea 7's Stavanger office, with the fabrication of the EHTF system taking place at the company's spoolbase at Vigra, Norway. Offshore operations will take place during 2020 and 2021.
While no exact value was disclosed, Subsea 7 defines a sizeable contract as being between $50 million and $150 million.
In a separate Dec. 12 release, Aker Solutions said it was granted a contract worth 700 million Norwegian kroner to deliver a subsea production system for the Ærfugl project.
Work will start immediately and involves facilities in Norway, the U.K., India, Malaysia and Brazil. The subsea structures, which include wellheads, vertical subsea trees, satellite structures, control systems, a tie-in module and about 30 kilometers of umbilicals, are slated for delivery in 2020.
Ærfugl is a gas condensate reservoir of about 300 million barrels of oil equivalent that will be developed in two phases. Three wells will be drilled in each phase, and the wells will be tied to the Skarv floating production off-loading and storage vessel. Operator Aker BP, as well as its partners, recently approved the final investment decision to go through with the second phase of the project.
As of Dec. 11, US$1 was equivalent to 9.14 Norwegian kroner.