Oilfield services firm Subsea 7 announced Thursday that it has been awarded an $800 million contract by Total E&P Norge for work involved in the development of the Martin Linge gas field, which is located some 110 miles west of Bergen in the North Sea.
The subsea, umbilical, riser and flowline (SURF) contract comprises engineering, procurement, construction and installation (EPIC) of the complete subsea facilities on the field. This will include: a 100-mile power cable from the Martin Linge platform to Kollsnes; a 43-mile export pipeline and associated valve structures, umbilical and spools for the gas export system; a 34-mile fiber optic cable; and a two-mile pipeline and riser system from the Martin Linge platform to the floating storage unit. The contract also includes transport and installation of the mooring system for the floating storage unit.
Under the terms of this contract Subsea 7 will deploy various pipelay, construction, diving, ploughing, trenching and survey vessels during the offshore period. The recently-delivered Seven Borealis, which provides a significant increase in our delivery capability to North Sea customers, will install the gas export pipeline on the project.
Engineering and project management will commence immediately at Subsea 7's Stavanger office with offshore operations due to commence in the spring of 2014. The duration of the contract is estimated at four years.
Subsea 7 vice president for Norway Stuart Fitzgerald commented in a company statement:
"We are delighted with this very important award from Total, which highlights the quality of our project management and engineering expertise, the breadth of our vessel fleet, the depth of our onshore organization, and our strong track record as an EPIC contractor. This project is the largest SURF contract ever awarded on the Norwegian Continental Shelf, and as such represents a step change for our sector in Norway.
"This project builds on the good experience we have had with Total in Norway over many years, including the recent successful delivery of the fast track Atla tie-back project which commenced production during October. Subsea 7 looks forward to successfully delivering the Martin Linge project, with safety and quality at the forefront throughout."
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