Subsea 7 has secured a ‘sizeable’ contract for a project at Shell-operated deepwater Ormen Lange field, located 120km off the coast of Norway.
According to Subsea 7, a sizeable contract would range between $50m and $150m.
The contract has been awarded by OneSubsea, Schlumberger’s subsea technologies, production and processing systems division.
OneSubsea received an engineering, procurement, construction and installation (EPCI) contract to provide a subsea multiphase compression system to the Ormen Lange Field.
Subsea 7 will be responsible for engineering, procurement, construction, and installation of the subsea flowline system.
The firm will also install OneSubsea’s multiphase compression system.
The Ormen Lange subsea compression project aims to unlock an additional 30 to 50 billion cubic metres of natural gas. This is expected to increase the field’s gas recovery rate from 75% to 85%.
Subsea 7 has completed the front-end engineering design study for subsea umbilicals and flowlines system of the Ormen Lange Field.
Subsea 7 Norway vice-president Monica Th Bjørkmann said: “This award demonstrates the value Subsea Integration Alliance brings by combining the technologies and capabilities of OneSubsea and Subsea 7 into a seamless integrated offering, resulting in the delivery of optimised solutions with reduced execution and interface risk.”
The contract comes a day after Norske Shell and Ormen Lange partners announced a final investment decision (FID) on the Ormen Lange wet gas subsea compression project.
The partners also submitted a Plan for Development and Operation (PDO) for the project to the Ministry of Petroleum and Energy.
Shell operates the field with a 17.8% stake. Other partners include Petoro (36.4%), Equinor (25.3%), Ineos (14%) and Vår Energi (6.3%).