Subsea 7 has been awarded a substantial contract from Aker BP on behalf of the Skarv Unit for the Ærfugl gas field development, located approximately 210 km west of Sandnessjøen in the Norwegian Sea.
Subsea 7 defines a substantial contract as being between $150 million and $300 million.
Ærfugl was previously known as Snadd until Aker BP recently selected “Ærfugl” as the field name for a gas discovery it made west of the Skarv field.
Subsea 7 said on Monday that the contract with Aker BP includes an option for the Ærfugl Phase 2 scope, which may be exercised by Aker BP in the future.
This EPCI contract is a long-distance tie-back involving the application of Subsea 7’s Electrically Heat Traced Flowline (EHTF) technology for the 21 km tie-back to the Aker BP-operated Skarv FPSO.
Project management and engineering will start immediately at Subsea 7’s offices in Stavanger, Norway. Fabrication of the EHTF system will take place at Subsea 7’s spoolbase at Vigra, Norway and offshore operations will take place in 2019 and 2020.
Phil Simons, Vice President North Sea and Canada in Subsea 7 said, “This is a considerable EPCI contract which is of significant importance for Subsea 7. Electrically Heat Traced Flowline has been developed by Subsea 7 in collaboration with the manufacturer to deliver leading flowline insulation performance and enable cost-effective long-distance tie-backs.”
Aker BP plans to file the POD for the Ærfugl field, located about 210 kilometers from Sandnessjøen, in December this year.