Woodside finances subsea tech order with Norwegian export loan

Norway’s OneSubsea is working to deliver subsea technology worth more than NOK 1 billion for Woodside’s Greater Enfield project off Australia, supported by export financing from Export Credit Norway, GIEK and DNB. 

OneSubsea was awarded a contract by Woodside to deliver a subsea production system and a dual multiphase boosting system for the Greater Enfield project in July 2016. The equipment is scheduled for delivery in the first half of 2018.

In a statement on Friday, Export Credit Norway said that, although the supplier industry has faced difficult conditions for several years, Export Credit Norway, GIEK ,and guarantor banks “are helping to secure important export contracts.”

Export Credit Norway, which offers financing to companies buying Norwegian capital goods and services, said that Woodside has taken up a $100 million loan to finance the purchase of this equipment.

The loan agreement is guaranteed by Norway’s Guarantee Institute for Export Credits (GIEK) (90%) and financial services group DnB (10%). It was signed at the end of January.

“This agreement is a good example of how Norwegian exporters can benefit from the Norwegian export financing scheme,” says Olav Einar Rygg, Director Ocean Industries at Export Credit Norway.

GIEK CEO, Wenche Nistad, said: “Good cooperation between commercial banks and the export credit scheme is important to us. We are very pleased that our collaboration with DnB on this transaction has been so productive, not only facilitating the financing solution but also enabling us to build a relationship with Woodside.”

According to Export Credit, a considerable proportion of OneSubsea’s production occurs in Norway and, together with its sub-contractors, the company comprises one of Norway’s largest employers in the oil and gas sector.

“We are in constant contact with a range of exporters and buyers who are evaluating new projects. Enquiries are also increasingly coming from international purchasers looking to Norway for equipment and services,” says Rygg.

Woodside’s Greater Enfield project will develop the Laverda Canyon, Norton over Laverda (WA-59-L) and Cimatti (WA-28-L) oil accumulations.

These reserves will be produced via a 31 km subsea tie-back to the Ngujima-Yin floating production storage and offloading (FPSO) unit, located over the Vincent oil field.

Offshore Energy Today Staff