Subsea 7 Bags Shell Contract for Ormen Lange Field

Subsea 7 announced the award of a contract with A/S Norske Shell for subsea pipeline installation services for the Ormen Lange Northern Field Development – Mid North Project in the Norwegian Sea.

The work is the first call-off under Subsea 7's Frame Agreement with Shell for Pipeline Installation services in the North Sea region awarded in September 2010, and the call-off is valued at approximately $70 million.

The Mid North Project will be developed with a new subsea template located approximately 6 km north of the existing subsea facilities on Ormen Lange in around 900m water depth, and will be tiedback to Ormen Lange by two 12" Production pipelines, a 6" service pipeline and a control umbilical.

Subsea 7's scope is to fabricate and install the two 6 km long 12" rigid pipelines and the 6" service pipeline, and installation of the control umbilical. Furthermore, Subsea 7 will perform all subsea connections and pre-commissioning activities on the new pipelines.

Engineering and procurement activities will commence immediately and will be performed at Subsea 7's offices in Stavanger, Norway. Fabrication of the pipeline will be carried out at Subsea 7's North Sea Spoolbase at Vigra on the north-west coast of Norway, in early 2012. Pipelay operations are due to commence in early 2012 and will utilize one of Subsea 7's specialized reeled pipelay vessels.The remainder of the offshore installation scope will be performed in summer 2012, utilizing Subsea 7's specialized offshore construction vessels suitable for deepwater subsea construction work.

The Ormen Lange field is located in the Norwegian Continental Shelf, approximately 130 km northwest of Kristiansund, in water depths between 850m and 940m.