Aker Solutions has won a front end engineering and design (FEED) contract for the Jotun floating production storage and offloading vessel (Jotun FPSO) life extension in the Norwegian continental shelf (NCS), worth over NOK100m ($11.52m), from Vår Energi.
The Jotun FPSO life extension is for the Balder X Project, which is part of the redevelopment of the Balder and Ringhorne fields, located offshore Norway.
The primary goal of the FEED study to be undertaken by Aker Solutions is to detail the scope of work needed to extend the life of the Jotun FPSO in the North Sea to up to 2045.
Vår Energi CEO Kristin Kragseth said: “This contract marks the first milestone for operated development in Vår Energi. With ambitions to grow, we see major opportunities in Norway, and I am proud that the oldest license area on the NCS, the Balder field, continues to create value and provide job opportunities for future generations.”
Vår Energi has plans to award various other key contracts for the Balder X Project, which include engineering procurement construction and installation (EPCI) for the Jotun FPSO, subsea production system (SPS), and subsea umbilical, risers and flowline (SURF) among others.
The company expects to tender and award the contracts in the first half of 2019.
Vår Energi, which was formed through the merger of Point Resources and Eni Norge earlier this month, said that close to NOK20bn ($2.3bn) will be invested in the redevelopment of the area, which includes the NCS license area PL 001.
The company has allocated an investment of NOK15bn ($1.73bn) on the Balder X Project. It plans to submit a revised Plan for development and operation (PDO) for the Balder X Project in the fourth quarter of 2019.
According to Vår Energi, the Jotun FPSO will be disconnected from its current offshore location offshore and brought onshore for a scheduled one year yard-stay. After completion of the yard-stay, the Jotun FPSO will be reinstalled in the Balder field where it is planned to begin production in 2021.
Vår Energi said that ordinary production at the Balder and Ringhorne fields will continue while the activities related to the FPSO are carried out.