Subsea 7 has been picked to carry out a front-end engineering and design (FEED) study for an oil and gas project offshore Norway.
The energy services giant announced on Friday it had bagged a contract with Equinor to analyse the marine installations associated with the Krafla project.
A FEED study is needed to finalise the technical definition of the proposed development before a final investment decision (FID) is taken.
Equinor is expected to make a final call later this year – work on the FEED study will kick off immediately.
Subsea 7 has recognised the contract award in its order backlog in the first quarter of 2022.
A subsequent engineering, procurement, construction and installation (EPCI) contract would only be recognised by Subsea 7 in its backlog upon FID.
A financial value for the potential deal wasn’t given but the company said it would represent a “large project award”.
Subsea 7 defines a large contract as being between $300 million and $500m.
Project management and engineering will take place in the company’s offices in Stavanger and Aberdeen.
Offshore installation activities would be scheduled for 2024, 2025 and 2026.
Monica Bjorkmann, vice president for Subsea 7 Norway said: “This award continues our long-standing collaboration with Equinor. The study enables Subsea 7 to engage early in the field development process, optimising design solutions and contributing to the final investment decision. We are delighted to be a trusted partner for Krafla field development, and we look forward to working closely with Equinor to successfully deliver our scope with safety and quality at the forefront throughout.”