Schlumberger Unit Wins Shell Subsea Contract

Schlumberger reported Thursday that its OneSubsea division has won an integrated subsea compression frame agreement from A/S Norske Shell.

Under the engineering, procurement, construction and installation (EPCI) contract, OneSubsea and Subsea Integration Alliance partner Subsea7 will supply a subsea multiphase compression system for the Ormen Lange Field in the Norwegian Sea, Schlumberger noted in a written statement emailed to Rigzone. Schlumberger added the project will deliver the industry’s longest deepwater tieback using a subsea multiphase compression system.

“Our subsea multiphase compression system is a robust, compact and cost-efficient solution that will help Shell unlock the full potential of the Ormen Lange Field,” commented Don Sweet, OneSubsea’s president. “Our unique wet gas compression technology can also help customers lower their carbon footprint.”

According to Schlumberger, the compression system will be powered and controlled from the Nyhamna onshore gas processing plant 120 kilometers from the subsea location. The firm contends the tieback distance represents another world record in terms of transmitting variable-speed power from an onshore facility to equipment on the seabed.

The system, comprising two 16-megawatt subsea compression stations tied into existing manifolds and pipeline, will be installed in 850 meters of water. During the first phase of the project, OneSubsea will perform engineering and design the entire system. Following a positive final investment decision (FID) by A/S Norske Shell and partners Petoro, Equinor, INEOS and ExxonMobil , the full EPCI contract scope will be executed, Schlumberger and Subsea 7 noted in separate written statements.

Subsea 7 reported that OneSubsea awarded it a contract to conduct a front-end engineering design (FEED) study for the Ormen Langue subsea umbilicals and flowline system. Should the project advance beyond FID, Subsea 7 estimates the award’s value to the company will range from US$50 million to US$150 million.

“This award is an important demonstration of the value Subsea Integration Alliance brings by combining the technologies of OneSubsea and Subsea 7 into a seamless integrated offering, resulting int eh delivery of optimized solutions, with reduced execution and interface risk,” stated Monica Th. Bjørkmann, Subsea 7’s vice president for Norway. “This compression tieback project builds on the Subsea Integration Alliance integrated boosting tieback packages supplied to Taqa Otter in the North Sea and Murphy Dalmation in the Gulf of Mexico.”

To contact the author, email mveazey@rigzone.com.