The $1.6bn Western Isles project involves developing two discovered oil fields called Harris and Barra located in the Northern North Sea, 160km east of the Shetlands and 12km west of the Tern field.
Under the contract, Subsea 7 will provide engineering, procurement, construction and installation services for two 2.5km long pipeline bundles and 11km long gas export pipeline.
Subsea 7 UK and Canada vice president Steph McNeill said the company will provide cost effective solutions to help Dana Petroleum develop the project.
"The award of this prestigious contract from Dana is an endorsement of our unique bundle technology," McNeill said.
The company will provide engineering and project management services from its Aberdeen office in Scotland and will begin offshore activities for the project in 2014.
Dana Petroleum secured approval from the Department of Energy and Climate Change for the development of Western Isles project which is expected to produce over 40,000 barrels of oil equivalent.
The project, once onstream is expected to add over 30,000 barrels to the company’s daily production in 2015.