Equinor submits $374 mln Eirin gas field development plan

On behalf of the partnership, Equinor has submitted a plan for development and operation (PDO) of the Eirin gas field to the Ministry of Petroleum and Energy.

Recoverable reserves in the field are estimated at 27.6 million barrels of oil equivalent, most of which is gas. The Eirin field, which was discovered in 1978, will be developed as a subsea facility tied to the Gina Krog platform in the North Sea. Total investments are estimated at just over NOK 4 billion (2023 NOK).

“Utilising Gina Krog’s infrastructure will enable Eirin to bring new gas to Europe fast, with good profitability and low CO2 emissions from production. The development will extend Gina Krog’s productive life from 2029 to 2036, and will be vital for the Sleipner area,” says Camilla Salthe, Equinor’s senior vice president for field life extension (FLX).

When the energy crisis struck in 2021, there was close cooperation with Norwegian authorities to deliver as much gas as possible to Europe. Increased gas export from Gina Krog, by exporting gas that was previously injected to improve oil recovery, was an important contribution. At the same time, this brought the need to accelerate projects to extend the field life.

Eirin is a central part of this work, and the project has been matured in record time. Production start-up is expected as early as 2025.

“Extending Gina Krog’s productive life also gives us the opportunity to mature additional new reserves in the area. We’re still seeing possibilities for new discoveries, which is why Eirin’s new subsea facility will enable tie-in of new fields,” says Ketil Rongved, Equinor’s vice president for FLX Projects.

With electrification of Gina Krog and partial electrification of Sleipner, production from Eirin will have low emissions, just three kilo of CO2 per barrel of oil equivalents.

The licence partners are Equinor (78.2 percent) and KUFPEC Norway (21.8 percent).

Source: Equinor

KBR Awarded Front End Engineering Design Contract for Equinor Bay du Nord FPSO Project

KBR announced that its Canadian entity, KBR Industrial Canada Co., has received a Letter of Intent (LOI) from Equinor Canada for the front-end engineering design (FEED) of the topside facilities of the new Bay Du Nord floating production, storage, and offloading facility (FPSO) to be located offshore Newfoundland, Canada.

The agreement also includes an option for continuation of detailed design and procurement management services through to final completion of the FPSO. The FEED scope comes on the back of the pre-FEED engineering carried out by KBR in 2022 and will further mature the engineering and execution planning, working towards a final investment decision with first production expected to be in the late 2020s.

During the FEED engineering, KBR will continue to help Equinor develop one of the lowest carbon emitting FPSO’s in the world, using an onboard combined cycle power system and the latest technology to minimize the number of crew onboard and maximize digital solutions. All these elements will produce energy safely and securely while minimizing carbon emissions.

KBR will execute the work scope jointly with Canadian sub-contractor Hatch Ltd., an employee-owned multidisciplinary engineering, project management, and professional services firm with a local office in St. John’s, Canada, and will provide Equinor with an integrated team across Canada and London.

The Bay du Nord FPSO is a deep-water facility utilizing industry leading technology and digital solutions to ensure safe and reliable production. This award builds upon KBR’s unrivalled knowledge and expertise in this arena.

“We are excited to be a part of this significant project with Equinor,” said Jay Ibrahim, president of KBR’s Sustainable Technology Solutions business. “This win is indicative of KBR’s strategic commitment to work with clients not only to secure energy supply for the world but to do it in a safe, responsible, and sustainable way. KBR adds maximum value to clients such as Equinor, by drawing on our extensive global engineering expertise and applying the latest technology and processes to deliver extraordinary outcomes.”

Source: KBR

Equinor awards contract worth NOK 8 billion to Aibel

Equinor has, on behalf of the Snøhvit partnership, awarded Aibel a major contract for Hammerfest LNG modifications in connection with the Snøhvit Future project. The contract is subject to governmental approval of the project.

Aibel has been awarded an EPCI contract that involves engineering, procurement, construction and installation of two new processing modules related to the onshore compression and electrification of the Melkøya plant. They will also build a new receiving station for power from shore and carry out integration work at the plant.

The contract is an option in the FEED contract (front-end engineering and design) awarded to Aibel in September 2020.

Aibel has been one of our main suppliers for Hammerfest LNG since the start-up in 2007. They know the plant well, have set up a local department in Hammerfest, and have solid experience from other major modification projects on plants while on stream. I therefore have high expectations of them doing a good job safely. This contract will have major ripple effects locally, regionally and nationally,” says Mette H. Ottøy, Equinor’s chief procurement officer.

Aibel will also carry out further upgrades of existing systems at Hammerfest LNG to make the plant more resilient for extended life until 2050.

This year and next, Aibel will award several major contracts to its subcontractors for work at the plant and will facilitate the use of local suppliers in several phases of the project, including construction. The engineering/design work starts immediately.

Aibel will carry out large, complex modifications at Hammerfest LNG. They will also build larger modules at their yards and most of the work will be carried out in the period of 2024-2026.

The largest project at Melkøya since the plant came on stream Snøhvit Future will create significant ripple effects. It is expected that about 70 percent of the value creation will go to Norwegian companies, and more than a third of this to Northern Norway. Regional employment during the project period is estimated at 1 680 person-years (5 400 person-years nationally).

The Snøhvit Future project consists of online compression and electrification of Hammerfest LNG at Melkøya. As the pressure drops in the reservoirs, compression is required to ensure sufficient flow of the gas to the plant. The project will extend plateau production and ensure high gas exports, jobs, and ripple effects also after 2030, while reducing CO2 emissions from the plant by 850,000 tonnes annually, corresponding to 2 percent of Norway’s total emissions. The Norwegian parliament has decided to reduce Norwegian emissions by 55 percent by 2030.

NOK 13.2 billion will be invested in the Snøhvit Future project, ensuring continued operation of the plant towards 2050.

Source: Equinor 

Saipem awarded two offshore contracts for a total amount of approximately 900 million USD

Saipem has been awarded two offshore contracts for a total amount of approximately 900 million USD.

The first contract – in partnership with Aker Solutions do Brasil – has been awarded by Total Energies, for the LAPA Southwest (LAPA SW) Development Project, a deepwater oil field  in the Santos Basin in the South Atlantic, 270 kilometres off the coast of Sao Paulo, in Brazil.

The scope of work encompasses the Engineering, Procurement, Construction, and Installation (EPCI) of Subsea Umbilicals, Risers, Flowlines (SURF) as well as a Subsea Production System (SPS).

LAPA SW Development Project is the first ever integrated SURF and SPS project awarded by TotalEnergies.

Saipem will maximize the local content by making use of its yard Guarujá CTCO (Centro de Tecnologia e Construção Offshore) for logistics activities and Quad Joints Fabrication and some other manufacturing activities.

The other contract has been awarded to Saipem by Equinor for the Irpa Pipeline project. The project, located in deep waters in the Norwegian Sea, consists of the installation of 80-kms-long swagged Pipe-in-Pipe pipeline connecting the subsea production template of Irpa field to the existing Aasta Hansteen platform.

The offshore operations are planned to take place in 2025 and will be performed by Saipem’s flagship vessel Castorone.

Source: Saipem

Aibel awarded an EPCIC contract worth a billion NOK for Equinor’s Irpa gas field development

Aibel has been awarded a billion NOK contract by Equinor for extensive modifications and preparation of the Aasta Hansteen platform for tie-in of the Irpa field (previously Asterix).

Aibel estimates the contract to be a large contract which at peak will employ over 200 people. Management and engineering will be carried out from Aibel’s office in Stavanger with the support of the offices in Oslo and Singapore. In addition, the project will exploit synergies with Aibel’s existing maintenance and modification contract for Aasta Hansteen, which is led by the Harstad office. Prefabrication and module assembly will take place at Aibel’s yards in Haugesund and Thailand.

The EPCIC contract (Engineering, Procurement, Construction, Installation and Commissioning) was an option when Aibel last year was awarded the FEED contract (Front End Engineering and Design) to plan the modifications in detail.

“The contract award is an acknowledgment to the organisation that has worked with the FEED. At the same time, it confirms Aibel’s leading position in modifications of infrastructure on the Norwegian continental shelf. We have a long history as main supplier within this area and look forward to providing an integrated solution in close cooperation with Equinor,” says President and CEO in Aibel, Mads Andersen.

Irpa is a gas field located 80 kilometres west of the Aasta Hansteen platform in the Norwegian Sea. The field will be developed as a so-called tie-in to Aasta Hansteen with export through the 482 km long gas pipeline Polarled to the Nyhamna gas processing plant.
In order to receive production from the Irpa field, comprehensive modifications must be made to the Aasta Hansteen platform, which will also extend its lifespan by seven years. This includes, among other things, integration work on the platform’s existing processing equipment as well as construction and installation of an approx. 450 tonnes monoethylene glycol module (MEG module).

Engineering work starts immediately, while the first offshore activities are expected already during February 2023. The project is expected to be completed in 2026.

Source: Aibel 

Aibel has been awarded a FEED contract by Equinor, on behalf of operator Gassco and owner Gassled, for the Kårstø Electrification Project (KELP)

A partial electrification of the Kårstø plant is planned, and Aibel will carry out a pre-project including detail planning of a comprehensive redevelopment and electrification of parts of the plant. The planned work includes construction of a new substation and replacement of gas-powered compressors.

The estimated value of the FEED contract is approx. NOK 130 million and will have an average staffing of around 85 employees. Project management and engineering will be carried out at Aibel’s offices in Haugesund. The pre-project has immediate start-up and is due to be completed in September 2022.

The contract also includes two options, where one comprises a EPCI turnkey delivery of the complete implementation scope. This is scheduled to be decided at the turn of the year 2022/23, and if the option is exercised, this may result in a contract of major size* for Aibel. The implementation of the project will at its peak employ about 600 people.

“This award confirms Aibel’s leading position within electrification of Norwegian offshore and onshore oil and gas infrastructure. We are proud to contribute to reducing future emissions in line with industry ambitions,” says President and CEO Mads Andersen.

Source: Aibel

North Star to expand workforce after bagging £270m offshore wind contract

The Dogger Bank A and B phases of the Dogger Bank wind farm have awarded UK-based North Star Renewables contracts for delivering three service operation vessels (SOVs) for the operation of these phases. The total value of the contracts including options is estimated at about GBP 270 million.

The three SOVs will incorporate the latest technology, including a hybrid battery solution and power-to-shore to reduce fuel consumption and emissions. Technicians servicing the turbines will spend two weeks on board the high-tech vessels, more than 130 km off the North East coast of England, ensuring the wind farm phases are safely and efficiently maintained to provide optimum wind turbine availability.

SSE Renewables is the operator during the construction phase of the wind farm and Equinor will be the operator during the operations and maintenance phase. Around 200 people will be needed to operate the wind farm, based either offshore or at a new base to be constructed at the Port of Tyne.

Dogger Bank will be the largest offshore wind farm in the world when complete in 2026, and is being built in three equal phases of 1.2 GW; Dogger Bank A, B and C.

North Star will deliver one SOV to be used for scheduled maintenance at Dogger Bank A and B. The vessel is due to be delivered in January 2024 and will also serve Dogger Bank C when this phase of the wind farm is operational.

A further two SOVs will be delivered by North Star to be used for corrective maintenance, at Dogger Bank A and Dogger Bank B. Delivery of these vessels is scheduled for July 2023 and July 2024 respectively.

A further contract for an SOV to be used for corrective maintenance at Dogger Bank C will be tendered at a later stage.

Each vessel will have dynamic positioning (DP2) capability, with walk-to-work gangways for safe transfer of personnel and equipment to and from the turbines. Using these gangways means that technicians will be able to transfer safely in wave heights above 3 meters, increasing the productive time on turbines and optimising wind farm availability.

All three contracts will run for a fixed period of 10 years and include three one-year options.

Onshore construction for Dogger Bank A and B began in January 2020 and remains on track despite challenges presented by Covid-19. Offshore installation will begin from 2022, with the first power from Dogger Bank A expected in the same year.

 “While work continues to ramp up on the construction of the wind farm, these state-of-the-art hybrid vessels will play a critical future role in ensuring the safe and efficient maintenance of the development when it reaches the operational phase. It’s an important milestone for the project and provides some insight into what life will be like working on the world’s largest offshore wind farm whilst living on board these technologically advanced SOVs,” says Steve Wilson, Dogger Bank Wind Farm project director.

Dogger Bank A and B are a joint venture between Equinor (40%), SSE Renewables (40%) and Eni (20%). These phases reached Financial Close in November 2020, securing the largest ever project financing in offshore wind.

The third phase, Dogger Bank C, is being developed on a different timescale and is owned by Equinor (50%) and SSE Renewables (50%). Financial Close is expected in late 2021.

Source: Equinor

Saipem

EQUINOR AWARDS SUBSEA INTEGRATION ALLIANCE INTEGRATED FEED CONTRACT FOR BACALHAU FIELD

Schlumberger announced an award to Subsea Integration Alliance of an exclusive contract by Equinor for the front-end engineering design (FEED) on its Bacalhau (formerly Carcará) project offshore Brazil. The contract scope brings together field development planning, project delivery and total life cycle solutions under an extensive technology and services portfolio. 

The contract is based on a two-step award. The FEED and pre-investment are starting now, with an option for the execution phase under a lump-sum turnkey setup that includes engineering, procurement, construction and installation for the entire subsea umbilicals, risers and flowlines (SURF) and subsea production systems (SPS) scope. Option for the contract is subject to Equinor’s planned investment decision for the Bacalhau project in late 2020. The field development will include 19 wells. Furthermore, Subsea Integration Alliance will also be responsible for life-of-field support, representing a fully integrated contract model across the entire field life cycle, from engineering and early engagement to aftermarket services.

We are extremely pleased that Subsea Integration Alliance has been awarded the FEED contract for the Bacalhau project,” said Henning Berg, CEO, Subsea Integration Alliance LLC. “The award comes on the back of a design competition where we have demonstrated our ability to maximize asset value through our integrated field development service. This involves dynamically connecting reservoir, production and economic models with well, subsea infrastructure and topside facilities in a single, collaborative environment using the Subsea Planner* collaborative field development solution. Through its tools and methodologies, Subsea Integration Alliance helps uncover the true value of an asset while seamlessly unifying planning and execution.”

“The award to Subsea Integration Alliance of the FEED contract for the Bacalhau project exemplifies our commitment to in-country value for Brazil, enabling regional efficiency and performance while increasing local content and alignment with Equinor’s strategic priorities,” said Don Sweet, president, OneSubsea.

The Bacalhau Field has located 185 km from the coast of the municipality of Ilhabela/SP, in the state of São Paulo, in a water depth of 2,050 m. Bacalhau is Brazil’s first integrated SPS and SURF project. The award is a significant endorsement of Subsea Integration Alliance’s strong position within the integrated market, our long-established local presence in Brazil and a commitment to support Equinor’s strategy of long-term growth in the region.

Source: https://keyfactsenergy.com/news/6503/view/