Norsk Hydro awards subsea system contract for Ormen Lange field in North Sea

By OGJ editors
HOUSTON, Dec. 5 -- Norsk Hydro ASA and its partners have inked a $145 million engineering, procurement, and construction (EPC) contract with FMC Technologies Inc. unit FMC Kongsberg Subsea AS for FMC to supply subsea systems and related services for the first phase of development of Ormen Lange field in the North Sea.

The EPC contract includes eight subsea trees and associated structures, manifolds and production control systems, as well as connection systems for flowlines and umbilicals, FMC reported. The contract also includes options for 8 additional subsea trees and associated equipment as well as potential further equipment deliveries in the future. An additional contract includes technical services related to installation and start-up.

Ormen Lange is the largest undeveloped gas field on the Norwegian Continental Shelf, FMC said.

Natural gas from the field will be transported via a 140 km pipeline to Nyhamna on the Norwegian coast for processing, then piped south to Statoil ASA-operated Sleipner fields in the North Sea and on to Easington in northeastern England.

FMC called the first phase of the Ormen Lange project and important one because of its "size, complexity, and technical challenges."

Pipeline contract
In October, British and Norwegian authorities reached an agreement on the main facets of a treaty that would pave the way for laying the two-part, 1,200 km Britpipe subsea natural gas pipeline from deepwater Ormen Lange field in the Norwegian Sea to the UK (OGJ Online, Oct. 7, 2003).

The Ormen Lange license group comprises Norsk Hydro, 18% and operator of the project's development phase; Royal Dutch/Shell Group, 17.2% and operator of the production phase; Petoro 36%, BP PLC 10.9%; Statoil 10.8%, and ExxonMobil Corp. 7.2%.

The license group last month awarded a $280 million contract to Stolt Offshore SA for the installation of part of the Ormen Lange pipeline. Upon completion, this pipeline will be the longest in the world, Stolt Offshore said.

Stolt Offshore will be responsible for the installation of 540 km of 44-in. pipeline, which will transport gas produced from the Ormen Lange via the North Sea Sleipner gas export hub to Easington in the UK.

The contract includes an option in 2006 for the installation of a 362 km, 42-in. pipeline from just outside Nyhamna and extending to the Sleipner platform through the Norwegian Trench. Stolt plans to use the LB200 pipelay barge for both installation projects.

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