Offshore engineering firm Subsea 7 said yesterday it had signed a £188million deal for work on a North Sea field.
The company will instal a six-mile bundle of pipelines as part of Talisman Sinopec Energy’s Montrose area redevelopment (Mar) project.
Subsea 7 said the bundle would tie back the Cayley production wells to a new bridge-linked platform on the Montrose installation.
Engineering and project management at Westhill, in Aberdeenshire, where Subsea 7 employs about 1,500 people, are starting straight away, with offshore operations commencing next year. The contract also includes an 11-mile production pipeline and other lines connecting the Shaw field to Montrose.
Steph McNeill, Subsea 7’s vice-president for UK and Canada, said: “This substantial contract award is greatly appreciated and continues our long-standing relationship supporting Talisman.”
Talisman Sinopec, created after Chinese firm Sinopec bought 49% of the Canadian group’s UK operations for £956million, plans to invest £1.6billion in the Mar project.
The redevelopment paves the way for an extra 100million barrels of oil to be produced in the area.
Geoff Holmes, chief executive of Talisman Sinopec, said: “Mar is one of the most exciting North Sea developments in recent years; a technologically challenging project and one with enormous potential benefits in terms of recoverable reserves.
“Equally, it provides a clear signal to the energy industry that we are fully committed to investing in assets, maximising recovery and extending the life of our fields.
“The oil and gas sector provides great rewards for the whole of the UK and we have dedicated ourselves to ensuring this continues for many decades to come.”