Subsea 7 Awarded FEED Contract in Norway
Subsea 7 Awarded FEED
Subsea 7 announced the award of a contract by Equinor for the front-end engineering and design (FEED) study for the marine installations associated with the Krafla development project, offshore Norway.
The awarded work is required to finalize the technical definition of the proposed development prior to Equinor and its partners making the final investment decision (FID) planned late 2022. The FEED study will begin immediately.
Subsea 7 has recognized the FEED award in its order backlog in the first quarter of 2022. The value of a potential, subsequent EPCI contract would only be recognized by Subsea 7 in its backlog upon FID, and would represent a large1 project award.
Project management and engineering will take place in our offices in Stavanger and Aberdeen. Offshore installation activities would be scheduled for 2024, 2025 and 2026.
Monica Bjørkmann, Vice President for Subsea 7 Norway said:
“This award continues our long-standing collaboration with Equinor. The study enables Subsea 7 to engage early in the field development process, optimizing design solutions and contributing to the final investment decision. We are delighted to be a trusted partner for Krafla field development, and we look forward to working closely with Equinor to successfully deliver our scope with safety and quality at the forefront throughout.”
According to Subsea 7, a large contract is defined as being valued between $300m and $500m.
The Krafla oil and gas field, which is equally owned by Equinor and Aker BP, is located in a water depth of approximately 110m, nearly 35km south of the Oseberg oil field, in the central part of the North Sea on the Norwegian Continental Shelf (NCS).
The Krafla license area comprises five discoveries including Krafla West, Krafla Main, Askja West, Askja East, and Krafla North.
In December last year, Aker BP awarded a contract to Subsea 7 for the Hanz field development, located in the North Sea.
Under the contract, Subsea 7 is responsible for the engineering, procurement, construction, and installation (EPCI) of the gas lift and production pipelines, and associated subsea infrastructures.