On behalf of the Wisting licence partners, Equinor has today signed a contract with Aker Solutions for front-end engineering and design (FEED) of a floating production and storage vessel (FPSO) for the Wisting field. Valued at around NOK 350 million, the study includes an option for engineering, procurement, construction, and installation (EPCI) calculated at NOK 8-12 billion.
“Equinor is cooperating well with partners, the supplier industry and the authorities to ensure a successful development of the Wisting field, meeting the requirements expected for future oil and gas production. We plan to submit the plan for development and operation (PDO) to the authorities at the end of 2022. A decision to develop the Wisting field will generate considerable value for Norwegian society and spin-offs for Norwegian supplier industry both in the development and operations phases,” says Geir Tungesvik, senior vice president for project development.
The Wisting field is a standalone field development in the Barents Sea, containing close to 500 million barrels of oil equivalent. Capital investments are expected to be in the order of NOK 60-75 billion. The concept chosen for the Wisting development involves a circular FPSO and a power-from-shore solution to be integrated in the technical solution, resulting in very low CO 2 emissions from the field.
The FEED contract includes an EPCI option. A floating production unit is to be developed in the FEED phase and Aker Solutions will be responsible for creating an overall solution covering topside facilities, living quarters, and a hull. The supplier expects the total scope of work to involve around 5500 person-years. Any exercising of the option will take place at an investment decision.
Involving up to 270 people, the FEED work will mainly be carried out in Norway. Leirvik AS and Sevan SSP AS will contribute as sub-suppliers of engineering services for the living quarters and hull respectively.
Kjetel Digre (right), CEO of Aker Solutions, Mette H. Ottøy, chief procurement officer (CPO), and Geir Tungesvik, senior vice president for project development.
“We have secured a supplier with extensive and relevant experience in engineering and construction of complex offshore projects on the Norwegian continental shelf. The contract strategy is based on using Norwegian suppliers by early involvement and will allow for utilizing the local supplier industry in North Norway, contributing to further development of this industry. The contract may help provide jobs for Norwegian yards and businesses for many years ahead,” says Mette H. Ottøy, chief procurement officer (CPO).
Equinor is cooperating with the Petro Arctic supplier network, which is mapping and having a dialogue with the supplier market in North Norway. Together we are planning a supplier seminar to be held during 2022.
Several FEED studies have been awarded following the Wisting partners’ decision to pursue the project (decision gate 2). The studies have been awarded to FMC Kongsberg Subsea, Technip Norge, Aker Solutions, OneSubsea Processing, IKM Ocean Design, Subsea 7, NOV, and Baker Hughes Energy. The main part of this work will be carried out in Norway.
The PDO for the Wisting field will be submitted to the Norwegian Parliament (the Storting) after the partners have made an investment decision in late 2022.
Date: Nov 10, 2021
Share this news: