Chevron North Sea Limited announced today that it has awarded a number of contracts for its Alder and Rosebank major capital projects to UK suppliers to a total value of over £550 million.
The subsea equipment vendor contract for the Rosebank project has been awarded to OneSubsea UK Limited (formerly Cameron Limited). The contract package includes the engineering, supply, and manufacturing of subsea manifolds, subsea trees and subsea control systems. Equipment manufacturing will take place at various locations in the UK, including at their facility in Leeds.
Three contracts have been awarded for the Alder project, also to UK vendors:
Detailed engineering, procurement, installation and commissioning of the complete subsea system, including the main subsea manifold, subsea isolation valve manifold, 28 kilometers of pipe-in-pipe flow line, umbilical and tie-in spools, awarded to Technip. This work will be carried out in Aberdeen, Evanton and Newcastle.
Design, manufacture and supply of two high pressure, high temperature (HPHT) vertical, subsea monobore trees and wellheads, awarded to OneSubsea UK Limited at their Leeds facility.
Design, manufacture and supply of the subsea control system, including the hydraulic and electrical components to be installed both at subsea and on the Britannia Bridge Linked Platform (BLP), to Aker Solutions at their Aberdeen facility.
“These projects are of great importance to Chevron’s growth strategy in the UK, representing new production West of Shetland and in the Central North Sea,” said Craig May, Managing Director of Chevron Upstream Europe.
“These contract awards, made prior to Final Investment Decisions (FID), represent long lead item commitments to enable us to protect schedules in a very competitive market for goods and services. They also demonstrate our ongoing belief in the UKCS as a place to invest, and our confidence in the expertise of the UK supply chain, particularly in subsea design, engineering and manufacturing.
“Both projects have received support from UK government efforts to stimulate new developments through field allowances. This support further demonstrates the importance of industry and government working together to maximise the economic production of the UK’s hydrocarbon reserves,” added May.
Rosebank has achieved two milestone events recently, with the submission to government for approval of both the Environmental Statement and the Field Development Plan.
Commenting on the announcement, Energy Minister Michael Fallon said:
“Today’s announcement by Chevron is very good news for the UK economy and our world-class supply chain. The North Sea is seeing a resurgence of investment and it is great to see companies like Chevron recognising that ‘made in Britain’ is a hallmark for the highest quality.
“From Aberdeen, Leeds and Newcastle this half a billion pound investment will support hundreds of highly skilled jobs in engineering, design and manufacturing.
“The Rosebank and Alder projects are worth billions of pounds and will unlock significant new oil and gas reserves. They demonstrate how development in technology and the right relationship between government and industry boosts production and provides energy security, jobs and investment.”