[Norway] Ormen Lange

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escveritas
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[Norway] Ormen Lange

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Photo: Shell

Aker Solutions Wins Bid for Ormen Lange Onshore Scope

Aker Solutions has been awarded a letter of intent from Norske Shell for the Ormen Lange Phase 3 (OLP3) onshore project. The scope is to integrate the wet gas subsea compression system with the Nyhamna onshore gas plant in Norway.

Subsea compression will enable increased recovery from the Shell-operated Ormen Lange field. Aker Solutions’ scope includes a 500-metric-ton module which will be fabricated at the company’s yard in Egersund, Norway. The contract will have a value of approximately NOK 600 million.

The delivery will include both engineering, procurement, construction and installation (EPCI). The awarded contract is a continuation of the front-end engineering and design (FEED) delivered by Aker Solutions. The contract is called off under an established long-term frame agreement for Nyhamna brownfield modifications. Aker Solutions has been present at Nyhamna since start of the development in 2004 and the award is a testimony to the relationship between Aker Solutions and Norske Shell.

The Nyhamna plant outside Molde in Mid-Norway receives gas via underwater pipelines from several offshore gas fields, including Ormen Lange. Nyhamna is operated by Gassco, with Shell as the technical service provider.

"Aker Solutions has a global business with supporting customers in maintenance and modifications of offshore installations and onshore industrial facilities. For the new scope, we will combine our expertise on what is best practice for safe and cost-effective project execution with our extensive knowledge of the plant at Nyhamna," said Linda Litlekalsøy Aase, executive vice president, electrification, maintenance and modifications at Aker Solutions.

Pre-execution work will start during first half of 2021. Pending final investment decision for the OLP3 project and confirmation from Norske Shell later in 2021, the work will progress into the execution phase. The engineering, procurement and project management will mostly be executed from Aker Solutions’ offices in Stavanger and Kristiansund, Norway. The module will be delivered from the company’s Egersund yard. The contract also involves civil construction and construction of new facilities at the site, which will be managed by a dedicated site team from Aker Solutions with support from partners. The work is expected to be completed in 2024.

The contract will be booked as order intake in the fourth quarter of 2020 in the Electrification, Maintenance and Modifications segment.
escveritas
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Re: [Norway] Ormen Lange

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PHASE 3 – FURTHER DEVELOPMENT AND EXPANSION OF NYHAMNA

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Aerial view of Nyhamna onshore facility

21 Sep 2021

Subsea 7 announced the award of a sizeable(1) contract by OneSubsea®, the subsea technologies, production and processing systems division of Schlumberger, for a project at the Ormen Lange field operated by Shell in the Norwegian Sea.

Subsea 7’s scope includes the engineering, procurement, construction, and installation of the subsea flowline system as well as the installation of OneSubsea’s multiphase compression system. The contract award follows completion of the front-end engineering design study(2) and will be executed as a Subsea Integration Alliance project(3).

Monica Th. Bjørkmann, Subsea 7’s Vice President Norway, said, “This award demonstrates the value Subsea Integration Alliance brings by combining the technologies and capabilities of OneSubsea and Subsea 7 into a seamless integrated offering, resulting in the delivery of optimised solutions with reduced execution and interface risk. Subsea 7 looks forward to progressing the execution phase of the project with a focus on safe, efficient and reliable operations.”

(1) Subsea 7 defines a sizeable contract as being between USD 50 million and USD 150 million.
(2) Announced on 31 October 2019.
(3) Subsea Integration Alliance is a strategic global alliance between Subsea 7 and OneSubsea®, the subsea technologies, production and processing systems division of Schlumberger, bringing together field development planning, project delivery and total lifecycle solutions under an extensive technology and services portfolio. As one team, Subsea Integration Alliance amplifies subsea performance by helping customers to define, select, install and operate the smartest subsea projects, that eliminate costly revisions, delays and reduces risk across the life of field.
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