Norwegian oilfield equipment and technology provider Aker Solutions said Wednesday it has received a letter of intent (LOI) for a front-end engineering and design (FEED) contract from energy company Equinor for the floating production, storage and offloading unit (FPSO) for the Wisting field development in the Norwegian Barents Sea.
The intended FEED contract includes an option for engineering, procurement, construction and integration (EPCI) of the topside for the FPSO. The scope of the FEED is to provide front-end design and engineering for a circular FPSO, to further progress the project development toward a planned final investment decision (FID). If the field development moves forward to the execution phase, Aker Solutions estimates the EPCI option to potentially represent a "significant" contract, worth between NOK 8 billion and NOK 12 billion ($963 million-$1.4 billion), subject to final investment decision and regulatory approvals.
"Wisting is one of the largest upcoming industrial projects in Norway. We are looking forward to continuing our longstanding relationship with Equinor for this significant field development, and to mature the project towards a planned investment decision," said Sturla Magnus, executive vice president and head of Aker Solutions' topside and facilities business.
The FEED award follows the completion of the study phase, and the work starts immediately with planned completion in the third quarter of 2022. The FEED work will be led by Aker Solutions’ offices in Fornebu, Norway.
The Wisting FPSO is based on a Sevan design. The topside will have a weight of about 20,000 metric-tons, consisting of a large process module and a large utility module.
"This major project will have significant positive effects on employment for our engineering resources and at our yards in Norway and create substantial ripple effects for the society and local communities near the yards," Magnus said.
Wisting is a greenfield development located in the Barents Sea, about 310 kilometers from the Norwegian mainland. Equinor is the operator of the field (35%), with partners OMV Norge AS (25%), Petoro AS (20%), Idemitsu Petroleum Norge AS (10%) and Lundin Energy Norway AS (10%).