Centrica Energy has awarded a contract to Aibel for field development projects on the Norwegian Continental Shelf.
The agreement includes all field development projects by Centrica, has duration of five years and can be extended for another five years.
Centrica’s agreement includes all project phases, from various study phases and pre-engineering work to the complete execution phase of an assignment; from engineering to construction, installation as well as completion.
Aibel president and CEO Jan Skogseth said: "We are very pleased to have Centrica as a new client, and we think they have established an exciting contract model.
"This is an interesting and extensive frame agreement, as it includes all phases for developing and executing a project."
Aibel’s contract is initially related to the Butch field located in the southern part of the North Sea.
Discovered in 2011, the field is situated 13km east of the Ula field and would be developed as a subsea tie-in to it.
The company plans to execute the processing at Ula prior to exporting the oil through pipelines to Ekofisk and onwards into Teesside in England.
Recoverable reserves at the Butch field are estimated to be between 27 million and 51 million barrels of oil equivalent, with 95% of it being oil.
Production at the field is planned to start in 2019, and is estimated to be 35,000 barrels of oil equivalent per day. Total estimated investment is expected to be between Nkr6bn and Nkr7bn (£500m and £600m).
Centrica Energy Norway has a 40% share in the licence and operates it. Remaining partners are Suncor Energy holding 30% interest, and Faroe Petroleum and Tullow Oil owning 15% each.
Image: Centrica’s agreement with Aibel has duration of five years and can be extended for another five years. Photo: courtesy of Aibel.