Subsea 7 said yesterday it had been awarded an £18.6million contract by oil giant BP to support the redevelopment of its Schiehallion field, 108 miles west of Shetland.
The contractor is to provide a construction ship for five months to carry out the disconnection of subsea risers before the removal and replacement of the field’s floating production, storage and offloading (FPSO) vessel.
The work will be engineered and managed from Subsea 7’s office at Westhill, near Aberdeen, and is due to start early next year.
A BP spokeswoman said “This award means BP has extended contracts worth over £300million in the last two months to subsea companies operating in the North Sea and with a strong presence in the Aberdeen area.”
Schiehallion, with the nearby Loyal field, is undergoing a £3billion redevelopment. This includes replacing an FPSO which has been on the field since start-up in 1998, with production from the unit expected to start in 2016. The work is expected to lead to over 400million extra barrels of oil from Schiehallion from late 2016 onwards.
Earlier this year, French energy service firm Technip said it would take on more than 100 people in the north-east as a result of it signing a deal – worth more than £560million – to replace the production facility and instal new subsea infrastructure.
In October, Subsea 7 announced a £185million contract extension with BP for North Sea fields including Schiehallion until 2017.
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