Subsea7 confirms contracts offshore Norway

Subsea7 today confirmed the award of three contracts by Aker BP; a major¹ contract for Yggdrasil field development project (formerly NOAKA), a large² contract for Skarv Satellite Project and a substantial³ contract for Valhall PWP-Fenris project, all located offshore Norway. The awards were pre-announced on 8 December 2022 and will be recorded in the backlog of Subsea and Conventional upon signature by all parties, expected to occur later today.

The contract scopes are awarded within the Aker BP subsea⁴ alliance framework as part of which Subsea7 will provide flowlines, flexible lines and perform the complete installation scope and Aker Solutions will provide subsea production systems and umbilicals.

The Yggdrasil field development project, located between Alvheim and Oseberg area in the North Sea, involves multiple subsea tiebacks to the fixed platforms in the Yggdrasil greenfield development. The tiebacks will utilise several Subsea7 technologies including pipeline bundles, pipe-in-pipe solutions and Swagelining polymer lined flowlines. Project management and engineering will commence immediately at Subsea7’s offices in Stavanger, Norway and Aberdeen, Scotland. Fabrication of the pipelines will take place at Subsea7’s spoolbase at Vigra, Norway while bundles will be fabricated at Wester, Scotland. Offshore operations are expected to take place between 2024 and 2027.

The Skarv Satellite project, located in the northern part of the Norwegian Sea, consists of Alve Nord, Idun Nord and Ørn tied back to the existing Skarv FPSO. Project management and engineering will commence immediately at Subsea7’s offices in Stavanger, Norway. Fabrication of the pipe-in-pipe pipelines will take place at Subsea7’s spoolbase at Vigra, Norway and offshore operations are expected to take place between 2023 and 2025.

The Valhall PWP-Fenris project, located in the southern North Sea, involves a tieback from the Fenris unmanned installation to the Valhall production wellhead platform and re-routing of existing gas export and gas lift pipelines to a new platform. Project management and engineering will commence immediately at Subsea7’s offices in Stavanger, Norway and Aberdeen, Scotland. Fabrication of the pipelines will take place at Subsea7’s spoolbase at Vigra, Norway and the bundle fabrication will take place at Subsea7’s site at Wester, Scotland. Offshore operations are expected to take place in 2024, 2026 and 2027.

Monica Th. Bjørkmann, Senior Vice President for Subsea7 Norway said: “We are delighted to have been awarded these three important projects by Aker BP. They are all testament to our collaboration with Aker BP and Aker Solutions, through the Aker BP Subsea Alliance, building upon our collective experience from previous and ongoing projects. The partnership enables Subsea7 to engage early in the field development process, optimising design solutions and contributing to a positive final investment decision. Subsea7 is looking forward to continuing our collaboration with a focus on safe, efficient and reliable operations.”

The contracts are expected to be formally signed in a ceremony at Aker BP’s offices on Friday 16 December. They are subject to the sanction or approval by relevant Norwegian petroleum and energy authorities.

^{1. Subsea7 defines a major contract as being over USD 750 million.}

^{2. Subsea7 defines a large contract as being between USD 300 million and USD 500 million.}

^{3. Subsea7 defines a substantial contract as being between USD 150 million and USD 300 million.}

^{4. The Aker BP Subsea Alliance is a partnership between Aker BP, Subsea7 and Aker Solutions.}