TechnipFMC has been awarded an integrated engineering, procurement, construction and installation (iEPCI) contract from VNG Norge for the Fenja development offshore Norway.
The contract follows a letter of intent signed between the two companies in early November.
TechnipFMC said on Tuesday that the contract covers the provision of subsea equipment including umbilicals, risers, flowlines and the subsea production system for the Fenja Project, previously known as Pil & Bue.
Fenja is located in the Norwegian Sea and will be tied back to the Njord platform. VNG Norge, as the operator of the field, on Tuesday submitted to the Norwegian Ministry of Petroleum and Energy the plan for development and operation for the Fenja field. VNG’s partners in the field are Point Resources (45%) and Faroe Petroleum Norge (25%).
Hallvard Hasselknippe, President of TechnipFMC’s Subsea Projects, commented: “This is TechnipFMC’s sixth iEPCITMaward and the largest one to date. It is also our first ,major integrated project award. We are grateful to VNG for being an early mover in embracing the iEPCITMexecution model and very happy to support their first E&P development as operator.
“The Fenja project will have the longest Electrically Trace Heated (ETH) pipeline in the world at 37 km, and will benefit from multiple TechnipFMC product groups and engineering locations.”
The partners are planning to invest NOK 10.2 billion ($1.2B), with planned production start in 2021. The production period is expected to be 16 years.