Subsea 7 Inc (OSE Symbol: SUB), one of the world's leading subsea engineering and construction companies, announced today that it has been awarded a contract by BP Norge AS for general subsea construction works in the Skarv and Idun fields in the Northern North Sea. The contract is valued in excess of US $140 million.
The scope of work comprises survey activities, installation of subsea structures, control umbilicals, tie-in and pre-commissioning of all flowlines, risers, control umbilicals and the gas export pipeline. Additionally, all fabrication of tie-in spools and protection systems are also to be undertaken by Subsea 7.
Engineering will commence immediately and the project will be managed from Subsea 7's offices in Stavanger, Norway. The offshore phase of the work, in excess of 300 vessel days, is due to take place between 2009 and 2011. A significant part of the scope is planned to be carried out by Subsea 7's new build installation vessel the Seven Seas.
Today's announcement follows an award to Subsea 7 by BP in October for the Skarv and Idun flowline installation scope of work. In 2006 BP awarded Subsea 7 the installation contract for the Valhall field.
Tor Espedal, Subsea 7's Norway Vice President comments, "This award, following on from the previous Valhall, Skarv and Idun awards, further strengthens our relationship with BP. It is a major step towards confirming Subsea 7's position as the Subsea Partner of Choice in the region for subsea fabrication and installation work. I am delighted to say that this contract and other more recent awards will provide a number of additional job opportunities at our office in Stavanger."
The Skarv and Idun fields are located on the Norwegian Continental Shelf, approx 200 km west of Sandnessjøen, between the Norne field (35 km to the north) and Heidrun (45 km to the south), in water depths between 350 and 450 m.