BHGE and Ocean Installer Win Norway Subsea Contract
Vår Energi AS has awarded Baker Hughes, a GE company (BHGE) and Ocean Installer AS a subsea contract for its Balder X project on the Norwegian Continental Shelf (NCS), BHGE reported Friday.
BHGE and Ocean Installer will engineer, procure, construct and install 16 new subsea production systems (SPS), umbilicals, risers and flowlines to the Jotun A floating production storage and offloading (FPSO) unit, BHGE noted in a written statement emailed to Rigzone.
In a related announcement, Vår Energi stated that BHGE and Ocean Installer will also carry out decommissioning and seabed cleanup work to remove redundant subsea systems and equipment from the Jotun field. Eni S.p.A. and private equity investor HitecVision own 69.6-percent and 30.4-percent interests, respectively, in Vår.
“Our Subsea Connect approach is transforming the way we do business and bringing new efficiencies to subsea projects,” Neil Sauders, president and CEO of BHGE’s Oilfield Equipment unit, stated. “Working closely with Vår Energi and Ocean Installer, we will deploy the key components of Subsea Connect, including early engagement, advanced field-proven technology, flexible partnerships and digital solutions to improve project economics.”
According to BHGE, the ongoing Balder X Project will redevelop the Balder and Ringhorne fields in the North Sea. The company stated that redevelopment activities include refurbishing and relocating the Jotun A FPSO to extend the production life to 2045 and extending the life of the Balder FPSO to 2030. BHGE added the redevelopment calls for drilling 15 new production wells in the Balder field area and 11 new production wells in the Ringhorne field area.
Vår stated in a separate announcement that the Jotun A FPSO will be moved to the Balder License PL 001 on the NCS. The company aims to reach production of 250,000 barrels of oil equivalent (boe) per day by 2023. It noted that it is developing more than 500 million boe in more than 10 existing NCS projects to achieve that target. Also, Vår estimates that Balder X will give PL 001 a total lifespan exceeding 80 years.
“The Balder X project is the largest award in Ocean Installer’s history, it doubles our order backlog and allows us to be part of Vår Energi’s first major development,” Ocean Installer CEO Kevin Murphy said. “We are proud to have be chosen for such a prestigious award and look forward to delivering Vår Energi a successful project in the North Sea.”
Kristin Kragseth, Vår’s CEO, pointed out the Balder X Project will give an economic lift to a major Norwegian oil and gas hub.
“It will provide new activity to the world-class oil service industry we have in the Stavanger region,” said Kragseth. “Both consortium companies have a strong local presence, and large portions of the construction and engineering work will come from local suppliers, securing employment in the region.”
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