Baker Hughes, a GE company, and Ocean Installer have bagged a subsea contract from Vår Energi for the Balder X project, which is being taken up in the North Sea with an investment of NOK 15 billion ($1.65 billion).
The contract is for providing engineering, procurement, construction and installation (EPCI) of subsea systems and associated services for the Balder X project, which calls for the re-development of the Balder and Ringhorne fields on the Norwegian Continental Shelf (NCS).
Financial terms of the contract were not disclosed.
Under the contract, BHGE and Ocean Installer will handle engineering, procurement, construction and installation of 16 new subsea production systems (SPS), umbilicals, risers and flowlines to the Jotun A floating production storage and offloading (Jotun A FPSO) unit.
BHGE and Ocean Installer will also undertake decommissioning work in the field.
Commenting on the Balder X project contract, Neil Saunders – President and CEO of BHGE Oilfield Equipment, said: “Our Subsea Connect approach is transforming the way we do business and bringing new efficiencies to subsea projects.
“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. Our experience in the Balder field, local capabilities and leading technology solutions will support on-time delivery and strong project execution.”
As part of the redevelopment work at the Balder and Ringhorne fields, the Jotun A FPSO will be refurbished and relocated with an objective to prolong the production life to 2045 and for increasing the life of the Balder FPSO to 2030. The Balder X project will also see drilling of 15 new production wells in the Balder field region along with drilling of 11 new production wells in the Ringhorne field region.
Kevin Murphy – CEO of Ocean Installer, commenting on the Balder X project contract, said: “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.
“We are proud to have been chosen for such a prestigious award and look forward to delivering Vår Energi a successful project in the North Sea. Furthermore, this project cements our close relationship with BHGE and provides a fantastic opportunity to showcase the strength and unique qualities of both companies in an integrated delivery.”
The Balder field has been producing since September 1999, while the Ringhorne field has been in production since 2003. The two Norwegian offshore fields were owned and developed originally by US oil and gas giant ExxonMobil.
Point Resources, one of the constituent companies of the recently created Vår Energi, acquired the Balder, Ringhorne, and Jotun fields from ExxonMobil a couple of years back. Vår Energi, for the record, was formed through the merger between Point Resources and Eni Norge, the former Norwegian subsidiary of Italian oil and gas company Eni.
Commenting on the contract awarded for the Balder X project, Kristin Kragseth – CEO of Vår Energi, said: “We are pleased to award this important contract to BHGE and Ocean Installer.
“It will provide new activity to the world-class oil service industry we have in the Stavanger region. Both companies have a strong local presence and large portions of the construction and engineering work will come from local suppliers, supporting employment in the region.”
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