Equinor has awarded two contracts and issued a letter of intent to TechnipFMC for pipelaying and subsea installation for three projects on the Norwegian continental shelf (NCS), the company said on June 23.

The projects in scope are Breidablikk and the gas import system for the Snorre Expansion project, for which contracts have been awarded, and Askeladd Vest, for which a letter of intent has been issued. The Breidablikk contract has subsea installation as an option.

The total value of the three assignments, including the option, is about NOK 1.8 billion (roughly US$189 million).

“We are pleased to award TechnipFMC new large assignments within pipelaying and subsea installation on the NCS. Giving three assignments to the same supplier enables efficiency gains and cost savings. It will also allow for a coordinated follow-up of the total delivery during the implementation phase. This creates value for all parties,” Peggy Krantz-Underland, Equinor’s chief procurement officer, said.

The scope of the assignments includes fabrication and laying of pipelines, installation of subsea structures, control cables and hook-up and testing of systems. The offshore operations under the contracts are planned to be carried out during 2021-2023.

The awards contribute to sustaining important workplaces for TechnipFMC in Norway, including the Orkanger spoolbase, where the pipelines will be fabricated before they are reeled onto the installation vessel. The awards are also expected to generate additional work through further sub-contracting to other companies.

“In a challenging period for the industry we aim to continue realizing the full potential of our NCS project portfolio. This must be carried out in close cooperation with our suppliers to ensure that we create value and activity in Norway. It will help sustain jobs in the supply industry and further develop the important competence the industry has built up,” Krantz-Underland added.

The contract award for Breidablikk is subject to a final investment decision and a final regulatory approval. The letter of intent for Askeladd Vest is subject to a final investment decision.

Offshore