Seabed-to-surface engineering firm Subsea 7 announced its £63m contract from BP Exploration Operating Company today, safeguarding 100 jobs at the company.
The deal is part of the second phase of the Clair Ridge Project, 75km west of Shetland, in which BP has invested £4.5bn.
The Clair Ridge development will comprise of two new bridge-linked platforms north-east of Clair Phase 1, with an estimated access to 640m barrels of recoverable oil, and see up to 120 thousand barrels per day at peak, extending the life of the field to 2050.
Subsea 7’s contract includes the project management, engineering, procurement, fabrication and installation of a 6km 22” oil export pipeline and a 14km 6” gas export pipeline connected to the new production facilities and existing Clair Phase 1 export systems.
The pipeline systems will allow product to be transported from Clair Ridge to Sullom Voe Terminal (SVT) in the Shetland Islands via a dedicated gas export pipeline spur tied into the Clair Phase 1 pipeline. The associated gas will be tied into West of Shetland Pipeline System via the gas export pipeline.
The 22” oil export pipeline bundle will be fabricated at Subsea 7’s Wester site facility in Wick, Scotland and will be installed using the Controlled Depth Tow Method. The 6” gas export pipeline will be fabricated at Subsea 7’s Vigra spoolbase, Norway, which engineers continuous pipe laying.
The deal has scope to include integrated subsea towhead structures, field testing and pre-commissioning activities, if the option is activated by BP.
Engineering and project management will commence from Subsea 7’s Aberdeen office in early 2012, with offshore operations due to commence in 2013.
Subsea 7’s UK vice president Steph McNeill was pleased to be awarded a major pipeline project by BP, highlighting the number of jobs it has safeguarded.
“Fabrication will take place at our Wick facility in Scotland, which has a proven track record of successful bundle design, fabrication and installation, securing work for approximately 100 people,” said Ms McNeill, “we look forward to helping bring on-stream the Clair Ridge Project in an efficient, timely and safe manner.”
Scottish Secretary Michael Moore said: “This major contract underlines the confidence of the oil and gas sector and world-leading engineering firms operating in Scotland.”
