Norway’s marine construction and operations player Ocean Installer, a wholly owned subsidiary of Moreld Group, has secured a contract defined as large with compatriot oil & gas player Vår Energi for the Balder Next development.
Under the contract that is expected to bring NOK 1-2 billion ($98-$196 million) in value, Ocean Installer is in charge of project management, engineering and flexible pipelines and risers product supply.
The contract is the first step in the Balder Next development, securing engineering for execution and long lead flexible products deliveries.
If the project final investment decision (FID) is approved, the remaining project scopes Ocean Installer is expected to be awarded will re-classify the full project to a major contract award, worth over NOK 2 billion.
The contract is called off under the companies’ strategic partnership signed in June 2022, and a continuation of Ocean Installer’s multi-year collaboration with Vår Energi in the Balder area since 2019.
The Balder Next – New Wells project is planned to be executed by Vår Energi’s Subsea Partnership with Ocean Installer, responsible for the subsea umbilicals, risers and flowlines (SURF), and OneSubsea, responsible for the subsea production systems (SPS).
“We are incredibly proud that Vår Energi continues to again place their trust in Ocean Installer and it is particularly satisfying to see the speed in which the Vår Energi Strategic Partnership is able to mature these opportunities. From our first collaboration on Balder Future which started back in 2019 to the fast track Balder Phase VI project awarded before the summer, we’ve built a relationship defined by trust and shared ambitions,” said Kevin Murphy , Ocean Installer CEO.
The Balder field is located in the Norwegian sector of the central North Sea, with Vår Energi as the operator, having a 90% ownership, and Kistos the remaining 10%.
Front-end engineering and procurement activities are currently underway, with flexible products manufacturing scheduled to commence in 2025, and offshore operations planned for 2027 and 2028.
The Balder Next – New Wells project will expand production by introducing six new subsea wells and preparing infrastructure for further tie-backs.