Subsea 7 has received a front-end engineering and design (FEED) study contract for the Krafla development project, offshore Norway.
The contract, which has been awarded by Equinor, would allow the project partners to finalise the technical definition of the Krafla development.
Upon finalising the project’s technical definition, the project partners will make the final investment decision (FID), which is scheduled for late 2022.
Subsea 7 plans to immediately start the FEED study for the marine installations associated with the Equinor-operated Krafla development project.
Subsea 7 Norway vice-president Monica Bjørkmann said: “This award continues our long-standing collaboration with Equinor.
“The study enables Subsea 7 to engage early in the field development process, optimising design solutions, and contributing to the final investment decision.”
The company will undertake project management and engineering work at its offices in Stavanger, in Norway, and Aberdeen, in Scotland.
The firm said it will undertake offshore installation activities in 2024, 2025, and 2026.
In a press statement, Subsea 7 said: “The value of a potential, subsequent EPCI contract would only be recognised by Subsea 7 in its backlog upon FID, and would represent a large project award.”
According to Subsea 7, a large contract is defined as being valued between $300m and $500m.
The Krafla oil and gas field, which is equally owned by Equinor and Aker BP, is located in a water depth of approximately 110m, nearly 35km south of the Oseberg oil field, in the central part of the North Sea on the Norwegian Continental Shelf (NCS).
The Krafla licence area comprises five discoveries including Krafla West, Krafla Main, Askja West, Askja East, and Krafla North.
In December last year, Aker BP awarded a contract to Subsea 7 for the Hanz field development, located in the North Sea.
Under the contract, Subsea 7 is responsible for the engineering, procurement, construction, and installation (EPCI) of the gas lift and production pipelines, and associated subsea infrastructures.