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Aibel awarded Oseberg portfolio agreement

by The Energy Intelligence
July 9, 2020
in Oil
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On behalf of the Oseberg partners, Equinor has awarded Aibel a portfolio agreement for the Oseberg fields for the period 2020-2026.

Oseberg field centre in the North Sea. (Photo: Ole Jørgen Bratland / Equinor ASA)

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On behalf of the Oseberg partners, Equinor has awarded Aibel a portfolio agreement for the Oseberg fields for the period 2020-2026.
The aim of the portfolio agreement is to ensure a holistic approach to planning and execution of projects at the Oseberg fields.

“There will be an increased level of project activity at the Oseberg fields in the coming years. With one main supplier, we will be able to synchronize the different projects schedules, utilize synergies between parallel projects and optimize personnel on board,” says Peggy Krantz-Underland, Equinor’s chief procurement officer.

“The portfolio agreement will allow us to work with Aibel on Oseberg in an integrated way, focusing on safety, continuous improvement and cost efficiency. It will also create predictability and continuation for supplier’s personnel and sites,” explains Krantz-Underland.

Furthermore, Equinor has awarded Aibel a front-end engineering and design contract (FEED) for the Oseberg Gas Capacity Upgrade and Power from Shore project (OGP), as the first call-off under the portfolio agreement. The value of the FEED contract is around NOK 120 million.

The objective of the OGP project is to maximize Oseberg asset value through timely low-pressure production and increased gas export, and to reduce the Oseberg carbon footprint by partly electrifying the Oseberg field centre and Oseberg South with power from shore. Increased gas capacity through the OGP project will increase the value of future tie-ins to Oseberg.

Equinor and partners are working towards a final investment decision in late 2021.

“Oseberg is a legacy field that has played a key role in developing the Norwegian continental shelf and will continue to be an important hub in the North Sea towards 2040,” says Geir Sørtveit, senior vice president for Operations West in Equinor.

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“We look forward to collaborating and working safely together with Aibel to develop Oseberg for further value creation and lower CO2 emissions for the future,” Sørtveit continues.

Upon a final investment decision by Equinor and its partners and a final regulatory approval in the OGP project, Equinor has the possibility to exercise a call-off for engineering, procurement, construction and installation (EPCI).

Tags: construction and installationengineeringGeir SørtveitOseberg fieldsOseberg Gas Capacity Upgrade and Power from Shore projectPeggy Krantz-Underlandprocurement
The Energy Intelligence

The Energy Intelligence

The Energy Intelligence is a leading energy media consultancy providing senior decision makers access to indepth analysis and commentary on the energy sector.

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