Subsea 7 and Aibel have been awarded contracts for Equinor’s Northern Lights project on Jan. 28.
The energy transition requires new solutions to cut emissions from industry sources in Norway and Europe. With the contract awards to Subsea 7 Norway and Aibel we have taken new and important steps to realize the Northern Lights project.
“The new contracts in the Northern Lights project will create important activity for the supplier industry. Most contracts are now in place, and we look forward to working together with the selected suppliers to realize this pioneering project,” Peggy Krantz-Underland, Equinor’s chief procurement officer, said.
Subsea 7 has won an EPCI contract for pipelaying and subsea installations. The contract value is estimated at about NOK 500 million (US$57.9 million).
The supplier will fabricate and lay a 100 km long pipeline that will transport CO2 from the intermediate storage site at Energiparken in Øygarden to the injection well in the North Sea.
Subsea 7 will also install a 36 km long umbilical that will connect the injection well to the Oseberg field from which the subsea injection facilities will be operated.
Project management and engineering will be delivered by Subsea 7’s office at Forus, while fabrication of pipes will be done at the Vigra spool base near Ålesund. The contract is expected to result in approximately 250 man-years during the project’s life. Planning of the work will start immediately, and the main offshore operations are scheduled to be carried out during 2022-2023.
Aibel has been awarded an EPCI contract for the Northern Lights subsea control system located on the Oseberg A platform. The contract is awarded as a call-off against the existing Oseberg portfolio agreement signed in July 2020. The estimated value of the assignment is about NOK 140 million (US$16 million).
The scope of work includes all necessary upgrades on the Oseberg A platform to pull in and operate the umbilical system that will connect the platform and the Northern Lights subsea facilities.
Project management and engineering will be performed at Aibel’s offices in Bergen and Stavanger, and prefabrication will take place at the Haugesund yard. The project will contribute with about 60 man-years for Aibel. The work will start in January 2021 and is planned to be completed late 2023.
“The Northern Lights project is the first of its kind offering a solution to cut emissions from industrial sources in Norway and Europe. Work has started at the site and with these two important contracts in place, we are ensuring that the project progresses according to plan in order to deliver a key part of the important Longship project,” Sverre Overå, project director of Northern Lights, said.
The award have resulted in over 150 new positions being created in the region and includes scopes that accelerates the company’s expansion in the drilling sector.
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