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Aker Solutions and Wood secure major contracts for Equinor’s Breidablikk development

28/09/2020

Aker Solutions has been awarded a contract from Equinor for the delivery of a subsea production system for the Breidablikk development in the North Sea. The contract value is estimated at about NOK 2.5 billion, including options.

The contract covers the delivery of four subsea templates and up to 23 subsea trees and associated components. The deliveries include Aker Solutions’ standard, lightweight vertical subsea trees, and Vectus™, the company’s next-generation subsea control system, which offers greater data and power capabilities.

"We are very pleased to see the Breidablikk project move forward, following the interim measures by the Norwegian authorities this summer," said Kjetel Digre, chief executive officer of Aker Solutions. "The award demonstrates our competitive position in the subsea market and will lead to more activity at many of our facilities in Norway and internationally, creating work for hundreds of employees across Aker Solutions. We look forward to continuing our long-standing collaboration with Equinor in this project."

The work will be carried out at Aker Solutions' locations in Fornebu, Tranby, Egersund, Sandnessjøen and Ågotnes, with additional deliveries from Brazil, Malaysia and the UK.

Aker Solutions booked NOK 2 billion related to the first 15 subsea trees in the second quarter of 2020 and will book NOK 0.5 billion for the additional eight subsea trees as order intake in the third quarter of 2020.

Wood has been awarded a contract to provide EPCI (engineering, procurement, construction, and installation) services in Norway.

Under the $84m contract, Wood will deliver all topside modifications at Equinor’s Grane installation in preparation for the tie-back of the Breidablikk subsea development. Modifications will include the integration of new pipelines and an umbilical, as well as increasing capacity for produced water at the facility. The majority of the preparatory work will be carried out by Wood’s teams in Sandefjord and Stavanger in Norway.

The work has been awarded following successful delivery of the FEED study, which was awarded with an option for the EPCI scope in 2019.

Dave Stewart, CEO of Wood’s Asset Solutions business in Europe, Africa, Asia and Australia, comments: “We are pleased to support the development of the Breidablikk tie-in project, which aligns with our ambition to support our clients with realising the full potential of their project portfolios.

“We have built a strong working relationship with Equinor over more than two decades and we look forward to continuing our track record as a key contributor to this impressive project.”

Lars Fredrik Bakke, Wood’s senior vice president in Norway, adds: “Our involvement in this project allows us to leverage the maintenance, modifications, and operational expertise within our Norway organisation to ensure the successful integration of this subsea tie-back.

“Winning this contract strengthens our position as a key partner in extending production from existing infrastructure, both in Norway and globally.”

The Breidablikk discovery will be developed as a subsea field with a tie-back to the Grane platform. The preparatory tie-in modifications at the Grane installation will be completed in the first half of 2024.

This contract is subject to final approval of the development by Norwegian authorities.

Breidablikk is a large oil discovery on the Norwegian Continental Shelf located north-east of the Grane field in the North Sea. Breidablikk will be developed as a subsea field with a tie-back to the Grane platform by Equinor and partners Petoro, Vår Energi and ConocoPhillips.

The project development is subject to final approval by the Norwegian authorities.

KeyFacts Energy Industry Directory:   Aker Solutions   l   Wood

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