Schlumberger's OneSubsea, a subsea production systems provider, has awarded "a sizable" contract to offshore installation company Subsea 7, related to Shell's recently sanctioned Ormen Lange subsea compression project in Norway.
The Ormen Lange subsea compression project, located in the Norwegian Sea, is designed to unlock an additional 30-50 billion cubic meters of natural gas, increasing the Ormen Lange field's overall gas recovery rate from 75 to 85%.
A wet gas compressor system will be installed on the seabed at 900m depth close to the wellheads, increasing gas flow from the reservoir into the wells. The 120 km distance from shore to the installations sets a new world record for subsea compression power step-out.
Subsea 7’s scope includes the engineering, procurement, construction, and installation of the subsea flowline system as well as the installation of OneSubsea’s multiphase compression system. Subsea 7 defines a sizeable contract as being between USD 50 million and USD 150 million.
The contract award follows the completion of the front-end engineering design study and will be executed as a Subsea Integration Alliance project-Subsea Integration Alliance is an alliance between Subsea 7 and OneSubsea.
Monica Th. Bjørkmann, Subsea 7’s Vice President Norway, said, “This award demonstrates the value Subsea Integration Alliance brings by combining the technologies and capabilities of OneSubsea and Subsea 7 into a seamless integrated offering, resulting in the delivery of optimised solutions with reduced execution and interface risk. Subsea 7 looks forward to progressing the execution phase of the project with a focus on safe, efficient and reliable operations.”