VetcoGray to Supply Skarv Subsea Systems

BP on behalf of the Skarv licensees has awarded contracts for both the initial supply and subsequent operational support of the Skarv Subsea Production System (SPS) to VetcoGray Scandinavia, Norway following a competitive tendering process.

The Subsea Production System contract contains two parts; the EPC phase and the subsequent Operational Support phase. The contracts will run consecutively with a managed overlap period and have an estimated combined value of about US $265 million.

The details of each contract are as follows:

1. Skarv-Idun SPS EPC (Engineer, Procure & Construct)

The EPC Contract has an expected duration of 4 years and an approximate value of about US $250 million.

The contract scope encompasses the detailed design, project management and supply of subsea production equipment for Skarv-Idun together with all related installation and commissioning support up until first hydrocarbon.

The main work locations for the EPC phase will take place in Haugesund and Billingstad in Norway, Aberdeen and Nailsea in the UK.

2. SPS Operational Support and Associated Services

The Operational Support and Associated Service Contract EPC Contract has an initial duration of 5 years from commencement of drilling operations plus options to extend the duration. The estimated contract value for core operational support services during the initial 5-year period is about US $15 million, with the possibility for procurement of additional SPS hardware, if required.

VetcoGray Scandinavia will perform this work from the facility in Dusavik Stavanger.

Participants in Skarv are BP as operator with 23.8350%; Statoil with 34.1100%; Shell with 28.08255; ExxonMobil with 11.9175% and Hydro with 2.0550%.

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