Aker Solutions has been awarded a letter of intent from Norske Shell for the Ormen Lange Phase 3 (OLP3) onshore project. The scope is to integrate the wet gas subsea compression system with the Nyhamna onshore gas plant in Norway.
Subsea compression will enable increased recovery from the Shell-operated Ormen Lange field. Aker Solutions’ scope includes a 500-metric-ton module which will be fabricated at the company’s yard in Egersund, Norway. The contract will have a value of approximately NOK 600 million.
The delivery will include both engineering, procurement, construction and installation (EPCI). The awarded contract is a continuation of the front-end engineering and design (FEED) delivered by Aker Solutions. The contract is called off under an established long-term frame agreement for Nyhamna brownfield modifications. Aker Solutions has been present at Nyhamna since start of the development in 2004 and the award is a testimony to the relationship between Aker Solutions and Norske Shell.
The Nyhamna plant outside Molde in Mid-Norway receives gas via underwater pipelines from several offshore gas fields, including Ormen Lange. Nyhamna is operated by Gassco, with Shell as the technical service provider.
"Aker Solutions has a global business with supporting customers in maintenance and modifications of offshore installations and onshore industrial facilities. For the new scope, we will combine our expertise on what is best practice for safe and cost-effective project execution with our extensive knowledge of the plant at Nyhamna," said Linda Litlekalsøy Aase, executive vice president, electrification, maintenance and modifications at Aker Solutions.
Pre-execution work will start during first half of 2021. Pending final investment decision for the OLP3 project and confirmation from Norske Shell later in 2021, the work will progress into the execution phase. The engineering, procurement and project management will mostly be executed from Aker Solutions’ offices in Stavanger and Kristiansund, Norway. The module will be delivered from the company’s Egersund yard. The contract also involves civil construction and construction of new facilities at the site, which will be managed by a dedicated site team from Aker Solutions with support from partners. The work is expected to be completed in 2024.
The contract will be booked as order intake in the fourth quarter of 2020 in the Electrification, Maintenance and Modifications segment.