Equinor awards portfolio agreement for Oseberg fields in North Sea

9 July 2020 (Last Updated July 9th, 2020 11:46)

Equinor has awarded a portfolio agreement to oil and gas services firm Aibel for the Oseberg fields in the Norwegian part of North Sea.

Equinor awards portfolio agreement for Oseberg fields in North Sea
The LNG project is on track to be commissioned by 2024. Credit: Linda Flores.

Equinor has awarded a portfolio agreement to oil and gas services firm Aibel for the Oseberg fields in the Norwegian part of North Sea.

The portfolio agreement is valid from 2020-26 and has an extension option.

According to Equinor, the agreement is aimed at ensuring a ‘holistic approach’ towards the planning and execution of Oseberg fields’ projects.

Aibel secured a front-end engineering and design contract (FEED) from Equinor for the Oseberg Gas Capacity Upgrade and Power from Shore project (OGP).

This is the first call-off under the portfolio agreement and is valued at around Nkr120m ($12.7m).

Equinor operates the Oseberg filed with a 49.3% interest. Petoro owns a 33.6% interest, while Total E&P Norge, ConocoPhillips Skandinavia hold 14.7% and 2.4% stakes respectively.

Equinor chief procurement officer Peggy Krantz-Underland said: “There will be an increased level of project activity at the Oseberg fields in the coming years. With one main supplier, we will be able to synchronise the different projects schedules, utilise synergies between parallel projects and optimize personnel on board.

Equinor and partners are in the process of making a final investment decision (FID) on the OGP project late next year.

Following an FID and final regulatory approval in the OGP project, Equinor can exercise a call-off for engineering, procurement, construction and installation (EPCI).

Aibel stated that it will manage the projects from its office in Bergen. It will also receive support from other offices.

Aibel president and CEO Mads Andersen said: “This is an important vote of confidence from Equinor and a recognition of the study work we have previously done at Oseberg.”

The Oseberg field, which started production in 1988, features a main reservoir, Oseberg Main, and various minor reservoirs.

In July last year, Equinor made a new oil discovery at the Oseberg area.