TechnipFMC Scores Up To $187,1M Worth of Deals in Norway

Norwegian oil and gas company Equinor has awarded oilfield services provider Technip two contracts and a letter of intent worth up to NOK 1.8 billion ($187,1 million).

Under the contracts and the letter of intent, TechnipFMC will provide pipelaying and subsea installation for three projects on the Norwegian continental shelf (NCS).

The projects in scope are Breidablikk and the Gas Import System for the Snorre Expansion Project, for which contracts have been awarded, and Askeladd Vest, for which a letter of intent has been issued. The Breidablikk contract has subsea installation as an option.

The scope of the assignments includes fabrication and laying of pipelines, installation of subsea structures, control cables, and hook-up and testing of systems. The offshore operations under the contracts are planned to be carried out during 2021-2023.

The contract award for Breidablikk is subject to a final investment decision and a final regulatory approval. The letter of intent for Askeladd Vest is subject to a final investment decision.

“We are pleased to award TechnipFMC new large assignments within pipelaying and subsea installation on the NCS. Giving three assignments to the same supplier enables efficiency gains and cost savings. It will also allow for a coordinated follow-up of the total delivery during the implementation phase. This creates value for all parties”, says Peggy Krantz-Underland, Equinor’s chief procurement officer.

Equinor said that the contract awards contributed to sustaining important workplaces for TechnipFMC in Norway, including the Orkanger spoolbase, where the pipelines will be fabricated before they are reeled onto the installation vessel. The awards are also expected to generate additional work through further sub-contracting to other companies, Equinor said.

“In a challenging period for the industry we aim to continue realizing the full potential of our NCS project portfolio. This must be carried out in close cooperation with our suppliers to ensure that we create value and activity in Norway. It will help sustain jobs in the supply industry and further develop the important competence the industry has built up,” says Krantz-Underland.