Highlights of the Week
- Business & Finance
Subsea World News has put together a recap of the most interesting articles from the previous week (December 10 – December 17).
Aker BP has submitted the plans for development and operations (PDOs) for the Valhall Flank West, Ærfugl (formerly Snadd) and Skogul (formerly Storklakken) fields to the Norwegian Ministry of Petroleum and Energy.
CEO Karl Johnny Hersvik handed over the PDOs to the Minister of Petroleum and Energy, Terje Søviknes. Over the lifetime of the fields, the three projects are estimated to generate total oil and gas revenues of NOK 100 billion, based on an oil price of USD 60 per barrel.
The contracts have a total estimated value of more than NOK 8 billion (USD 960 mln) and a duration extending to 2023.
In addition, the contracts include options for a total of 20 years.
The award was made on behalf of the Skarv Unit and is subject to government approval of the plan for development and operation (PDO) of Ærfugl.
The subsea system will include wellheads, vertical subsea trees, a tie-in module and an umbilical riser base.
Nautilus has been informed by Fujian Mawei Shipbuilding that MAC Goliath (MAC), the buyer of the production support vessel (PSV) being built for Nautilus’ Solwara 1 subsea mining project, has failed to pay the third installment of the contract price (approximately USD 18 million + interest).
Under the shipbuilding contract, MAC is required to rectify the default immediately, and perform corresponding obligations under the contract.
The contracts are for the Skogul project and the Valhall Flank West project, valued between $50 million and $150 million.
Earlier this week, Subsea 7 also announced a contract from Aker BP between $150 million and $300 million for the Ærfugl (previously known as Snadd) gas field.