Subsea 7 S.A. and Aker Solutions have been awarded contracts by Aker BP on behalf of the Ærfugl gas field development.

Subsea 7's contract is an EPCI contract for a long-distance tie-back involving the application of Subsea 7's Electrically Heat Traced Flowline (EHTF) technology for the 21 km tie-back to the Skarv FPSO.

Project management and engineering will commence immediately at Subsea 7's offices in Stavanger, Norway. Fabrication of the EHTF system will take place at Subsea 7's spoolbase at Vigra, Norway and offshore operations will take place in 2019 and 2020.

The contract includes an option for the Ærfugl Phase 2 scope, which may be exercised by Aker BP in the future. The contract is said to be worth between USD 150-300 million.

Subsea Production System

At the same time, Aker Solutions acquired a contract to deliver the subsea production system for the first phase of the Ærfugl development offshore Norway. The award was made on behalf of the Skarv Unit and is subject to government approval of the plan for development and operation (PDO) of Ærfugl.

The subsea system will include wellheads, vertical subsea trees, a tie-in module and an umbilical riser base. The contract for Aker also includes an option for Ærfugl Phase 2.

The work will begin immediately and will involve Aker Solutions facilities in Norway, Malaysia and the UK. The parties agreed to not disclose the financial value of the contract.

Ærfugl

Ærfugl is a gas condensate field about 210 km offshore Sandnessjøen in Norway. It will be connected back to the Skarv floating production, storage and offloading vessel (FPSO) operated by Aker BP.

The first phase of Ærfugl includes three production wells and is scheduled to start in the fourth quarter of 2020.