Wood Group has been awarded the detailed design scope of the subsea tie-back from the Utgard gas and condensate field to the Sleipner facilities, in the Norwegian North Sea. The $1 million work scope is the first call off under the master service agreement (MSA) signed in May 2016.
Effective immediately, the three-year contract will be executed from Wood Group’s offices in Stavanger and Oslo.
The Utgard tie-back consists of a 21km long pipe-in-pipe production pipeline from the 4-slot template at Utgard to the Sleipner T platform and an integrated service umbilical (ISU) from the Sleipner A.
The contract builds on Wood Group’s support of the Utgard field development; earlier this year the company completed the front end engineering design (FEED) for the same project.
Robin Watson, Wood Group’s chief executive, said: “We are excited to continue our work on the next stage of the Utgard field development and will leverage our deep knowledge of the field and the Sleipner facilities, alongside our commitment to working collaboratively with Statoil to ensure success in effective and efficient delivery of this challenging subsea project.”
Discovered in 1982 Utgard (formerly Alfa Sentral) is located 21 kilometers from the Sleipner field. The discovery has been considered for development on several occasions in the past.
Earlier in August, Statoil and its partners submitted the Plan for Development and Operation (PDO) and the Field Development Plan (FDP) for the Utgard gas and condensate discovery in the North Sea to Norwegian and UK authorities.
According to Statoil, recoverable reserves are estimated at 56.4 million barrels of oil equivalent, whereas capital expenditures are projected at about NOK 3.5 billion.