Norwegian energy services company Aker Solutions has won a letter of intent with Shell in Norway for work on the Ormen Lange Phase 3 (OLP3) onshore project. Ormen Lange is a field in the Norwegian Sea.
Under the scope of the letter of intent, Aker Solutions will be responsible for the integration of the wet gas subsea compression system at the field with the Nyhamna onshore gas plant in Norway.
Subsea compression will enable increased recovery from the Shell-operated Ormen Lange field. Aker Solutions’ scope includes a 500-metric-ton module which will be fabricated at the company’s yard in Egersund, Norway. The contract will have a value of approximately NOK 600 million (around $67,9 million).
The delivery will include both engineering, procurement, construction, and installation (EPCI). The awarded contract is a continuation of the front-end engineering and design (FEED) delivered by Aker Solutions. The contract is called off under an established long-term frame agreement for Nyhamna brownfield modifications.
The Nyhamna plant outside Molde in Mid-Norway receives gas via underwater pipelines from several offshore gas fields, including Ormen Lange. Nyhamna is operated by Gassco, with Shell as the technical service provider.
Aker Solutions said that the pre-execution work would start during the first half of 2021. Pending the final investment decision for the Ormen Lange Phase 3 project and confirmation from Shell later in 2021, the work will progress into the execution phase.
The engineering, procurement, and project management will mostly be executed from Aker Solutions’ offices in Stavanger and Kristiansund, Norway.
The module will be delivered from the company’s Egersund yard. The contract also involves civil construction and construction of new facilities at the site, which will be managed by a dedicated site team from Aker Solutions with support from partners.
The work is expected to be completed in 2024.