Aker BP has given a contract to Norwegian oil services company Aker Solutions to provide the subsea production system for the first phase of the Ærfugl development offshore Norway.
The Ærfugl gas project is expected to cost $1.19bn as per preliminary estimate revealed by Aker BP in February.
The contract to Aker Solutions was given by Aker BP on behalf of the Skarv Unit. It will be subject to Norwegian government’s approval of the development and operation (PDO) plan of Ærfugl, which was known as Snadd until late November.
Financial value of the contract has not been revealed by the parties.
As per the contract terms, the subsea system to be delivered by Aker Solutions will comprise wellheads, vertical subsea trees, a tie-in module along with an umbilical riser base.
Aker Solutions’ contract also has an option for Ærfugl Phase 2 development.
Aker Solutions executive vice president Knut Sandvik said: “We are pleased to have secured this contract.
“Our vertical subsea tree sets a new standard for safe and cost-efficient offshore operations.”
Aker Solutions will start work related to its contract immediately and will use its facilities in Norway, the UK and Malaysia.
Located around 210km offshore Sandnessjøen, Ærfugl is a gas condensate field. It will be tied back to the Skarv floating production, storage and offloading (FPSO) vessel, which will be operated by Aker BP.
Ærfugl spreads on a 60km area and is located just west of the Skarv field. The first phase of Ærfugl will have three production wells and is slated to commence production in the last quarter of 2020.
Ærfugl’s ownership is similar to that of the Skarv field, reported Reuters in February, with the operator of both the fields being Aker BP with a stake of 23.84%.
Image: Illustration of Ærfugl development in offshore Norway. Photo: courtesy of Aker Solutions.