Balder X project : BHGE, Ocean Installer win subsea contract from Vår Energi

GE subsidiary Baker Hughes (BHGE) and Norwegian subsea contractor Ocean Installer have won a subsea contract from Vår Energi for the Balder X project in the North Sea.

The Balder X project, which calls for an investment of NOK 15 billion ($1.65 billion), involves the re-development of the Balder and Ringhorne fields located on the Norwegian Continental Shelf (NCS).

Baker Hughes and Ocean Installer will provide engineering, procurement, construction and installation (EPCI) of subsea systems and associated services for the Vår Energi project.

Financial terms of the contract were not revealed by the parties.

As per the contract terms, Baker Hughes and Ocean Installer will carry out engineering, procurement, construction and installation of 16 new subsea production systems (SPS), risers, umbilicals, and flowlines to the Jotun A floating production storage and offloading (Jotun A FPSO) vessel.

The two companies will also execute decommissioning work in the field.

BHGE, Ocean Installer win subsea contract from Vår Energi for the Balder X project in North Sea. Image courtesy of num_skyman at FreeDigitalPhotos.net.

On being awarded the Balder X project contract, Neil Saunders – President and CEO of BHGE Oilfield Equipment, said: “Our Subsea Connect approach is transforming the way we do business and bringing new efficiencies to subsea projects. Working closely with Vår Energi and Ocean Installer, we will deploy the key components of Subsea Connect, including early engagement, advanced field-proven technology, flexible partnerships and digital solutions to improve project economics.

“Our experience in the Balder field, local capabilities and leading technology solutions will support on-time delivery and strong project execution.”

The redevelopment work at the Balder and Ringhorne fields will involve refurbishment and relocation of the Jotun A FPSO in order to ensure production life of up to 2045 and also for extending the life of the Balder FPSO to the year 2030.

The Balder X project will also involve drilling of 15 new production wells in the Balder field region apart from drilling of 11 new production wells in the Ringhorne field area.

Kevin Murphy – CEO of Ocean Installer, on bagging the Balder X project contract, said: “The Balder X project is the largest award in Ocean Installer’s history, it doubles our order backlog and allows us to be part of Vår Energi’s first major development.

“We are proud to have been chosen for such a prestigious award and look forward to delivering Vår Energi a successful project in the North Sea. Furthermore, this project cements our close relationship with BHGE and provides a fantastic opportunity to showcase the strength and unique qualities of both companies in an integrated delivery.”

While the Balder field was brought on stream in September 1999, the Ringhorne field began production in 2003. ExxonMobil is the original owner and developer of the two Norwegian fields, which were eventually acquired by Point Resources.

In 2018, Point Resources merged with Eni’s Norwegian subsidiary to form Vår Energi.

Kristin Kragseth – CEO of Vår Energi, on the Balder X project, said: “We are pleased to award this important contract to BHGE and Ocean Installer. It will provide new activity to the world-class oil service industry we have in the Stavanger region.

“Both companies have a strong local presence and large portions of the construction and engineering work will come from local suppliers, supporting employment in the region.”