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Aker Solutions formally signed the FEED contract with Equinor, valued at around NOK 350 million.
Aker Solutions announced receiving a letter of intent from Equinor for front-end engineering and design (FEED) of a floating production, storage and offloading (FPSO) vessel for the Wisting field.
The contract will be booked as order intake in the fourth quarter of 2021 in the Renewables and Field Development segment.
Source: Aker Solutions
The total value of the three contracts is estimated at USD 455 million. The contracts have a firm period of 4 years and two 2-year options.
“The awards build further on our positive cooperation experience with the three selected suppliers in our projects worldwide. They will be essential to ensure safe and efficient drilling and well operations on the Bacalhau field,” says Peggy Krantz-Underland, Equinor’s chief procurement officer.
The contract scope awarded to Baker Hughes covers drilling services and completion. Halliburton’s scope of work will include intervention services and liner hanger, while Schlumberger will deliver wireline services.
The awards are expected to make a significant contribution to local content in Brazil. The average local content of the three contracts, considering the majority of services will be performed in Brazil, is estimated at 74%.
“Brazil is a core area for Equinor, and Bacalhau is an important asset in the Brazilian pre-salt Santos area. Together with our partners, we are currently maturing the project towards a final investment decision (FID) which is planned in 2021,” says Trond Bokn, acting senior vice president for project development in Equinor.
Earlier this year, the partnership entered into front end engineering and design (FEED) contracts with early commitments and pre-investments for the Bacalhau field with MODEC for FPSO and Subsea Integration Alliance (SIA) for SURF. The awards have an option for the execution phase under a lump sum turnkey contract setup which includes engineering, procurement, construction and installation (EPCI) for the entire SURF and FPSO scopes.
Partners in Bacalhau: Equinor 40 % (operator), ExxonMobil 40 %, Petrogal Brasil 20 % and Pré-sal Petróleo SA (PPSA, non-investor Government Agency).
Source: equinor.com
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 has been issued. The Breidablikk contract has subsea installation as an option.
The total value of the three assignments, including the option, is about NOK 1.8 billion.
“We are pleased to award TechnipFMC new large assignments within pipelaying and subsea installation on the NCS. Giving three assignments to the same supplier enables efficiency gains and cost savings. It will also allow for a coordinated follow-up of the total delivery during the implementation phase. This creates value for all parties”, says Peggy Krantz-Underland, Equinor’s chief procurement officer.
The scope of the assignments includes fabrication and laying of pipelines, installation of subsea structures, control cables and hook-up and testing of 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 sub-contracting to other companies.
“In a challenging period for the industry we aim to continue realizing the full potential of our NCS project portfolio. This must be carried out in close cooperation with our suppliers to ensure that 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,” says Krantz-Underland.
The contract award for Breidablikk is subject to a final investment decision and final regulatory approval. The letter of intent for Askeladd Vest is subject to a final investment decision.
Source: Equinor