Aker Solutions Bags 20-Year Deal with Chevron in Gulf of Mexico

Norway's Aker Solutions has entered a master agreement to provide umbilicals for Chevron-operated oil and gas fields in the US Gulf of Mexico. It has also won its first work under the agreement, to supply 24 kilometers (15 miles) of umbilicals for Chevron’s Anchor project.

The scope of the Chevron master agreement includes the delivery of engineering, design, and manufacturing of dynamic and static control umbilicals, dynamic and static power umbilicals, and service and installation support.

Under the first order for the Anchor project in the US Gulf of Mexico, the scope includes about 24 kilometers (15 miles) of 20,000 psi dynamic steel tube- and power umbilicals and distribution equipment.

The first ultra-high pressure development is located approximately 225 kilometers (140 miles) offshore Louisiana at a water depth of 1,524 meters (5,000 feet). Chevron sanctioned the $5.7 billion Anchor project in December 2019, targeting first oil production in 2024.

The field is believed to hold more than 440 million barrels of potentially recoverable oil-equivalent resources.

In a statement on Monday, regarding the umbilicals agreement, Aker Solutions said: "This agreement lays the foundation for a long-term collaborative relationship incentivizing both Chevron and Aker Solutions to jointly improve long-term performance both technically and commercially through multi-project synergies, execution excellence and repeatability, and life-of-field thinking." 

"We are honored to have entered this master order with Chevron and to have been awarded the Anchor work order," said Luis Araujo, chief executive officer of Aker Solutions. "This demonstrates the mutual trust between the two organizations, as well as the capabilities and experience of our umbilicals manufacturing organization in the US."

Aker Solutions' facility in Mobile, Alabama in the United States will perform the engineering, design, and manufacturing of the umbilicals. The work will start up immediately. Aker Solutions did not share the financial details of the Anchor order.

The Anchor field will be developed using the semi-FPU, which will have a production capacity of 75,000 b/d of oil and 28 MMcf/d of gas, with the potential for future expansion.