Scana has been awarded "contract intent and instruction to proceed" to deliver finished machined riser forgings to FMC through its subsidiary Scana Subsea AB.
The High Pressure Production Risers are intended for the Snorre TLP in the Greater Snorre Area on the Norwegian continental shelf. The field is operated by Statoil and the production risers are part of their replacement program.
The scope includes forging and machining of production riser joints for 10 riser systems and additional spare components, and an option for additional riser systems. The contract value for the first 10 riser systems is US $9.4 million. The contract positions Scana for potential additional deliveries in the future replacements for the project as well as upcoming pursuits elsewhere in the world.
Manufacturing is planned to start immediately and deliveries will commence from 4th quarter 2010 to 2012 in batch deliveries. The contract will also involve our subsidiary Scana Steel Björneborg in addition to Scana Subsea fronting the contract.
CEO in Scana Industrier ASA, Rolf Roverud, said, "This is the first major contract for Scana Subsea, which was formed to strengthen our efforts towards the riser market within oil and gas. The award order recognizes Scana material knowledge combined with product realization through our plant capabilities."
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