Offshore oilfield services company Petrofac has won another contract in the North Sea offshore windfarm industry. Dutch-German Transmission grid operator TenneT awarded the contract to Petrofac for the Hollandse Kust Zuid (HKZ) offshore grid connection, as well as the Alpha and optional Beta HVAC wind substations located in the North Sea.
The award comes as the Dutch Government targets 3.5GW of offshore wind energy production capacity by 2023. In order to reach this target, five 700MW standardised concept transformer substations have been planned for installation offshore.
Petrofac chief commercial officer George Salibi said: “We have been involved in a number of projects with TenneT in the North Sea, so are delighted with the opportunity to support them with this key project. The award of this EU tender builds on our relationship and is further demonstration of Petrofac’s expansion into adjacent sectors, including renewable energy.”
Under the contract, Petrofac will be responsible for the engineering, procurement, construction and installation of the third and fourth substations, in a contract with a total value of around $200m.
TenneT media relations manager Jeroen Brouwers told Offshore Technology: “In the tender, in addition to price, the quality of the providers and their offers were also taken into account. Petrofac has managed to win the contract by getting the best score on the combination of price and quality.
“I do not have any data on traditional O&G service companies stepping into offshore wind (grid) services, but since offshore wind is a rapidly growing business globally the offshore wind industry can profit from their experience.”
HKZ Alpha is scheduled to be operational by 2021. The construction of HKZ Beta is contingent on the tendering of a windfarm concession by the government of the Netherlands. It is scheduled to be operation in 2022.
Last May, Petrofac reached a long-term framework agreement with Transmission Capital Partners to deliver engineering services at six of its offshore transmission owner assets.
Petrofac also secured a contract in 2016 from Iberdrola Engineering and Construction UK to support the East Anglia ONE North Sea offshore windfarm, providing a detailed engineering design.
The company first entered the offshore wind industry in early 2016, working with project partner GE to construct and install a turnkey power system to connect the Galloper North Sea offshore windfarm to the grid. The system allowed for the supply of up to 336MW of clean energy, in a contract worth more than £110m ($146m).