Centrica signed a string of partnership agreements with three suppliers - Subsea 7, Aibel and DNV GL.
The firm says it is looking to create a strategic partner alliance (SPA) model covering all phases of project execution, with duration of up to 10 years as it gears up to front end engineering and design (FEED) on the Dutch development in the Norwegian North Sea - Centrica's first project in the Norwegian sector.
Centrica says: "The objective is to establish a long-term relationship between Centrica and the suppliers, to create value and predictability."
“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 SPA agreements with strong suppliers, who have extensive experience with field developments on the Norwegian continental shelf,” says Vice President Projects Arne Bjørlo of Centrica.
Centrica and its partners on Butch are due to invest NOK6-7 billion to develop the field. Aibel will deliver design, engineering and fabrication, Subsea 7 will provide pipelines, umbilicals and subsea service, while DNV GL will verify the work done.
“We have carried out a thorough and timely process, both to identify the various partners, and to clarify how we will implement the SPAs – a model I think will be attractive for all parties,” says Bjørlo.
The agreements have duration of five years, with an option of an additional five years. Initial total value of the agreements is about NOK1.5 billion.
The Butch field was discovered in 2011, and is 13km east of the Ula field. The Butch field will be developed as a subsea tie-in to the Ula field. The processing will be executed at Ula before the oil is exported through pipelines to Ekofisk and onwards into Teesside in England. The gas will be injected into the Ula reservoir.