Another multi-million dollar deal for TechnipFMC – this time off Norway
UK-headquartered TechnipFMC has secured – what it deems to be – a significant integrated engineering, procurement, construction, and installation (iEPCI) contract with OMV for a gas development project on the Norwegian Continental Shelf (NCS).
According to TechnipFMC, this contract for the Berling gas development project, previously known as Iris Hades, is expected to bring between $75 million and $250 million and will be OMV’s first iEPCI project in Norway as an operator. The UK player will design and install the subsea production systems, controls, pipelines, and umbilicals for the development in the Norwegian Sea, off Norway.
Jonathan Landes, President, Subsea at TechnipFMC, commented: “We’re proud to have OMV join the growing number of clients who are experiencing the benefits of our integrated project execution model. Through iFEED, we demonstrated that iEPCI provides a solution, which will accelerate delivery of this development. We are excited to support OMV through its first project as an operator in the North Sea.”
The company explains that this award follows a six-month integrated front end engineering and design study, which optimised the field layout and improved the project’s economics by confirming the suitability of thermally insulated pipe-in-pipe technology for the flowline used in this tie-back.
This award comes only days after Norway put the project on its approved list along with 18 other ones. The Berling field consists of two separate discoveries in the Norwegian Sea and is planned to be developed with a four-slot subsea production template tied back via a 24-kilometre pipeline to the Equinor-operated Åsgard B processing platform for separation and treatment. The start of the subsea installation is currently planned for 2Q/2024.
Knut Mauset, General Manager of OMV (Norge), remarked: “With the EPCI contract award to TechnipFMC for the Berling subsea facilities, we managed to achieve a significant milestone in one of OMV’s key natural gas development projects. The estimated volumes will substantiate our strategic goal to maintain a high, stable gas supply to Europe.”
Total investments are estimated at around NOK 9 billion (close to $832 million). The production period is assumed to be five years while the employment impacts are estimated by the companies to be 4,200 man-years for development and operation together throughout the field’s lifetime. OMV’s partners in this project are Equinor and DNO.
The Åsgard B topside modifications will be executed by Equinor, and the firm awarded Aker Solutions a contract for the tie-in project in March 2023. A drilling rig contract is in place with Transocean to use the Transocean Norge rig in a consortium with Wintershall Dea Norge, with Berling drilling slated for 3Q/2026. Three production wells will be drilled, and the first gas is expected in 2028. The estimated recoverable reserves are expected to be around a total of 45 million boe.
Business is booming for TechnipFMC, as the firm revealed another multi-million dollar deal with Azule Energy, a joint venture between BP and Eni, earlier this week, which will enable it to provide subsea production systems for a development project offshore Angola.