Aker Solutions, Det Norske Oljeselskap and Subsea 7 have agreed on a "one for all, all for one" collaboration model that marks a major shift in how an operator and its suppliers can work together on oil and gas developments offshore Norway.
The alliance combines Det Norske's exploration and production know-how with Aker Solutions' expertise in front end engineering, brownfield modifications and subsea systems and Subsea 7's capabilities in the engineering, procurement, installation and commissioning of subsea umbilicals, risers and flowlines (SURF).
Continuity and Reuse of Solutions and Technology
It will enable the operator and suppliers to work as one integrated team to find the most cost-effective solutions for developing Det norske's Norwegian subsea field portfolio. Before now, field developments have typically been managed on a project-by-project basis that curtails reuse of technology and solutions.
The integrated project management team will consist of experts from each company. This will enable continuity from one field development to another and facilitates a reuse of solutions and technology that will lower costs, reduce development time and promote safe and more efficient work methods amid a focus on continuous improvement. All parties share both risks and rewards.
Overall management of the alliance will be through a steering committee comprised of senior management from each company. The project management team will be led by a manager from Det norske.
Framework Agreement
The alliance accord comes after Det norske in June announced a four-year framework agreement with Aker Solutions to provide subsea production systems and services for the operator's oil and gas developments in Norway and with Subsea 7 for SURF services. The scope of these framework contracts has a total potential value of about NOK 2.8 billion, of which approximately NOK 800 million is Aker Solutions' share and NOK 2 billion is Subsea 7's portion. These values may change depending on how much work the operator calls for under the contracts. Aker Solutions will book individual orders under the contract as they come in.
