Subsea 7 Nets 5 Year Offshore Work With Centrica

Published at 12:59PM - 30/10/15

Subsea 7 has announced that it has been awarded a longterm contract with oil and gas production firm Centrica, for work offshore Norway.

The contract will see Subsea 7 support Centrica, over a period of 5 years throughout its assets across the Norwegian Continental Shelf, on an ‘exclusive basis’.  The agreement has an option for an extension built in.

As part of the agreement, Subsea 7 will supply Centrica will all early and conceptual subsea engineering, as well as Front End Engineering and Design (FEED) and the execution of all offshore Subsea Umbilicals, Risers & Flowlines (SURF) work.

Subsea 7 have said that work on the contract will start immediately, from its office in Stavanger, Norway.

Vice President Subsea 7 Norway, Monica Th. Bjørkmann, said: “The collaboration agreement with Centrica allows the parties to work together to optimise delivery by aligning drivers, objectives and processes to their mutual benefit.

The agreement opens up a new way of working on the Norwegian Continental Shelf. We believe this way of working will deliver differentiated and positive outcomes for all parties, providing cost effective, optimised technical solutions and earlier delivery of projects.”

Offshore Butch Field

Although the contract covers Centrica’s entire Norwegian offshore operations, Subsea 7 will focus primarily on the development on the offshore Butch field, a field that Centric and partners are working hard to bring on stream.

It is the third contract Centrica has awarded for work on the Butch Field today (30 Oct), with other contracts being awarded to Aibel for topside engineering and fabrication and DNV GL as consultants.

The total investment in the field is estimated to be in the region of NOK7 billion (US$819 million).

Arne Bjørlo, Vice President Projects of Centrica, says: “Centrica is about to embark on its first operated field development in the North Sea, the Butch field. We want to build expertise and capacity over time. This is why we are entering long-term