Oseberg oil field : Aibel wins contract from Equinor for modification tasks

Aibel has bagged a portfolio agreement from Equinor for carrying out modification tasks on the Oseberg oil field in the North Sea.

The Norwegian oil industry company said that the first call-off of the agreement is for undertaking front-end engineering and design (FEED) of Oseberg Gas Capacity Upgrade and Power from Shore (OGP).

According to Aibel, the portfolio agreement with Equinor has a duration of five years and has an extension option. Included in the agreement are study work, minor FEEDs, and major modification project executions, and EPCI projects.

The oil industry company said that the portfolio agreement for the Oseberg oil field is worth over NOK 2.5 billion ($269 million) and work under it will be managed  from its Bergen office with the backing of other offices.

In 2021, Aibel will undertake a FEED for the OGP project, which include new modules for the Oseberg field center and related integration work both offshore and at the onshore facility located at Kollsnes.

Aibel wins contract from Equinor for modification tasks at Oseberg oil field. Photo courtesy: Aibel/Øyvind Sætre.

Peggy Krantz-Underland – Equinor chief procurement officer said: “There will be an increased level of project activity at the Oseberg fields in the coming years. With one main supplier, we will be able to synchronize the different projects schedules, utilize synergies between parallel projects and optimize personnel on board.

“The portfolio agreement will allow us to work with Aibel on Oseberg in an integrated way, focusing on safety, continuous improvement and cost efficiency. It will also create predictability and continuation for supplier’s personnel and sites.”

Subject to the partners of the Oseberg oil field taking a positive investment decision and the project getting approval from the authorities, Equinor has the scope to sign a call-off agreement for engineering, procurement, construction and installation (EPCI), said Aibel.

The objective of the extensive upgrade projects at the Oseberg field is to maximize gas exports and simultaneously to establish a solution for onshore power to bring down CO2 emissions from the energy-intensive process.

Mads Andersen – President and CEO of Aibel, commenting on the Oseberg oil field contract said: “This is an important vote of confidence from Equinor and a recognition of the study work we have previously done at Oseberg. At the same time, there is also an endorsement of Aibel’s commitment to electrification on the Norwegian continental shelf, where we are already playing a prominent role in the electrification of Johan Sverdrup and the surrounding fields at the Utsira High.”

Equinor is the operator of the Oseberg oil field with a stake of 49.3%. The Norwegian oil and gas giant is partnered by Petoro (33.6%), Total E&P Norge (14.7%), and ConocoPhillips Skandinavia (2.4%) in the offshore oil field, which has been in production since 1988.