Equinor awards key contracts for wind project to power oil and gas platforms
- Business & Finance
Norwegian oil and gas company Equinor has signed contracts totalling around NOK 3.3 billion ($357.6M) for the Hywind Tampen floating offshore wind farm development. The project will supply electrical power to the nearby oil and gas platforms Gullfaks A, B, C and Snorre A and B in the North Sea.
In August 2019, Norwegian government’s climate change tackling fund Enova has awarded Equinor up to NOK 2.3 billion grant to support the development of Hywind Tampen project.
Earlier in October, Equinor and partners made a final investment decision for the Hywind Tampen development and two updated plans for development and operation were submitted to Norwegian authorities.
The wind farm will be located some 140 kilometres from shore, between the Snorre and Gullfaks platforms.
Equinor said on Thursday, October 31 that the contracts were awarded on behalf of the Gullfaks and Snorre partners to Kværner, Siemens Gamesa Renewable Energy, JDR Cable System, and Subsea 7.
“The signing of five major contracts is a key milestone in realizing the Hywind Tampen pioneer project. Won in international competition, the contracts prove that the oil and gas industry is also competitive for renewables projects. The awarded contracts will generate considerable spin-offs in Norway,” said Anders Opedal, Equinor’s executive vice president for Technology, projects & drilling.
Work scope for contract winners
The substructures will be designed and constructed by Kværner, allowing the company to utilize its expertise in concrete structures on the Norwegian continental shelf for this contract.
The substructures will be constructed at Kværner’s yard at Stord and site at Dommersnes in the Vindafjord in Norway. The contract includes assembly activities, tow-out and installation of completed wind turbines. The project will involve several Norwegian engineering communities.
Fabrication of the wind turbines has been awarded to Siemens Gamesa, and will be carried out at several locations in Europe before they are transported to Wergeland Base in Gulen in western Norway for assembly.
The electrical cables will be delivered by JDR Cable System and fabricated in Hartlepool in the UK. Subsea 7 Norway will be responsible for installation of electrical cables and connection to the Snorre and Gullfaks platforms.
Equinor will as operator be responsible for operation and maintenance of the wind farm. Maintenance of the wind turbines will be carried out by Siemens Gamesa’s Norwegian service organization through its five-year contract regarding the wind turbine delivery.
First ever platforms powered by floating offshore wind
According to Equinor, the oil and gas platforms will be the first ever powered by a floating offshore wind farm. Emissions from the Gullfaks and Snorre fields will be reduced by more than 200,000 tonnes per year, equivalent to annual emissions from 100,000 passenger cars.
The Hywind Tampen investment will be close to NOK 5 billion. All contracts are subject to final approval of the plan for development and operation (PDO) by Norwegian authorities. The wind farm is scheduled to start production at the end of 2022.
Gullfaks license partners are Equinor (51%), Petoro (30%), and OMV (19%). Snorre license partners are Equinor (33.3%), Petoro (30%), ExxonMobil Exploration and Production Norway (17.5%), Idemitsu Petroleum Norge (9.6%), DEA Norge (8.6%), and Vår Energi (1.1%).
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