First tranche of contracts awarded for Sigyn off Norway

ExxonMobil Corp. and its partners have awarded contracts worth about 287 million kroner ($30.5 million) for the development of Sigyn gas and condensate field in the Norwegian North Sea, field partner Statoil AS reported Friday. FMC Kongsberg Subsea AS, Reinertsen Engineering SA, and Itochu/Kawasaki each won contracts for the 2 billion kroner development.


By the OGJ Online Staff

LONDON, July 6 -- ExxonMobil Corp. and its partners have awarded contracts worth about 287 million kroner ($30.5 million) for the development of Sigyn gas and condensate field in the Norwegian North Sea, field partner Statoil AS reported Friday.

FMC Kongsberg Subsea AS will handle engineering and construction of the field's subsea production systems -- including seabed installations, control systems, Christmas trees and well heads -- under a contract valued at 210 million kroner.

Reinertsen Engineering SA was awarded a 7 million kroner contract for engineering of the pipeline system, while, under a 70 million kroner deal, Itochu/Kawasaki will supply material for two 12.5-km pipelines that will link the seabed installations on Sigyn with the Statoil-operated Sleipner A installation.

Statoil stressed that the contracts awarded contain a clause covering cancellation costs if the plan for development and operation of Sigyn -- handed in recently to Norway's Ministry of Petroleum & Energy by field licensees Statoil, ExxonMobil, and Norsk Hydro AS -- is not approved.

The development plan calls for Sigyn, on Block 16/7, to be brought on stream in the first quarter of 2003 via a 2 billion kroner subsea development concept using a template tied back to Sleipner East.

The expected producing field life is 10 years. Sigyn has reserves of 5.6 billion cu m of gas and 5.6 million cu m of condensate.

ExxonMobil operates Sigyn with a 40% interest; Statoil has a 50% stake; and Hydro owns 10%.

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