Chevron Awards North Sea Contracts to UK Suppliers

Chevron North Sea reported Tuesday that it has awarded $840 million of contracts connected to its Alder and Rosebank projects to UK-based suppliers.

The subsea equipment vendor contract for the Rosebank project was awarded to OneSubsea UK Limited. The contract package includes the engineering, supply, and manufacturing of subsea manifolds, subsea trees and subsea control systems. Equipment manufacturing will take place at various locations in the UK, including at their facility in Leeds.

Three contracts have been awarded for the Alder project. Technip was awarded an EPIC (engineering, procurement, installation and commissioning contract for the complete subsea system, including the main subsea manifold, subsea isolation valve manifold, 16 miles of pipe-in-pipe flow line, umbilical and tie-in spools. This work will be carried out in Aberdeen, Evanton and Newcastle.

As well as the Rosebank project work, OneSubsea UK won the contract to design, manufacture and supply two high pressure, high temperature (HPHT) vertical, subsea monobore trees and wellheads. The work will take place at its Leeds facility.

Aker Solutions' Aberdeen facility will design, manufacture and supply the subsea control system, including the hydraulic and electrical components to be installed both at subsea and on the Britannia Bridge Linked Platform (BLP).

"These projects are of great importance to Chevron’s growth strategy in the UK, representing new production West of Shetland and in the Central North Sea," Chevron Upstream Europe Managing Director Craig May said.

"These contract awards, made prior to final investment decisions (FID), represent long lead item commitments to enable us to protect schedules in a very competitive market for goods and services. They also demonstrate our ongoing belief in the UK Continental Shelf as a place to invest, and our confidence in the expertise of the UK supply chain, particularly in subsea design, engineering and manufacturing."
Adding his own commenting on the announcement, UK Energy Minister Michael Fallon said: 

"Today's announcement by Chevron is very good news for the UK economy and our world-class supply chain. The North Sea is seeing a resurgence of investment and it is great to see companies like Chevron recognizing that 'made in Britain' is a hallmark for the highest quality.

"From Aberdeen, Leeds and Newcastle this half a billion pound investment will support hundreds of highly skilled jobs in engineering, design and manufacturing.

"The Rosebank and Alder projects are worth billions of pounds and will unlock significant new oil and gas reserves. They demonstrate how development in technology and the right relationship between government and industry boosts production and provides energy security, jobs and investment."

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