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Subsea 7 awarded contract offshore Norway

Luxembourg – 11 December 2017 - Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) today announced the award of a substantial(1)contract from Aker BP on behalf of the Skarv Unit for the Ærfugl(2)gas field development, located approximately 210 km west of Sandnessjøen in the Norwegian Sea. The contract includes an option for the Ærfugl Phase 2 scope, which may be exercised by Aker BP in the future. 

This EPCI contract is a long-distance tie-back involving the application of Subsea 7’s Electrically Heat Traced Flowline (EHTF) technology for the 21 km tie-back to the Skarv FPSO. Project management and engineering will commence immediately at Subsea 7’s offices in Stavanger, Norway. Fabrication of the EHTF system will take place at Subsea 7’s spoolbase at Vigra, Norway and offshore operations will take place in 2019 and 2020. 

Phil Simons, Vice President North Sea and Canada in Subsea 7 said, “This is a considerable EPCI contract which is of significant importance for Subsea 7. Electrically Heat Traced Flowline has been developed by Subsea 7 in collaboration with the manufacturer to deliver leading flowline insulation performance and enable cost-effective long-distance tie-backs. This award acknowledges Subsea 7 as a partner for delivering pioneering technology, and highlights our proven track record for safely delivering successful operations in some of the harshest offshore environments. Subsea 7 looks forward to successfully delivering our workscope on Ærfugl, with safety and quality at the forefront throughout.”

  1. Subsea 7 defines a substantial contract as being between USD 150 million and USD 300 million.
  2. Ærfugl was previously known as Snadd