Aker BP has awarded the subsea contracts for the Kobra East & Gekko (KEG) development project to the Subsea alliance comprising Aker Solutions and Subsea 7.

The contracts, worth between $80m and $136.5m, follow the company’s recent announcement to invest around NOK8bn ($935m) for the development of the Alvheim field in the North Sea.

The contracts are part of Aker BP’s Alliance agreement with Aker Solutions and Subsea 7, signed in 2018.

Also, they form part of long-term subsea SPS and SURF agreements between Aker BP and Aker Solutions and between Aker BP and Subsea 7, signed in 2015.

The scope of works includes engineering, procurement, fabrication and installation of subsea facilities and related tie-in equipment for the KEG project.

The subsea facilities include a subsea production system, four horizontal subsea trees, three-manifolds, control systems, three static subsea umbilicals along with related tie-in equipment and installation work.

The contract works are expected to commence immediately, installation campaigns are planned to begin in the second quarter of 2022 and completed in the first quarter of 2024.

Aker BP projects senior vice-president Knut Sandvik said: “The subsea alliance between Aker Solutions, Subsea 7 and Aker BP has demonstrated capability and added value through a series of subsea project deliveries to Alvheim in recent years.

“Close cooperation between all the parties in the project, company internal, between company and suppliers and between suppliers, is instrumental in making the KEG project a success.”

Located in the Alvheim region, the project is owned by Aker BP, which serves as an operator, alongside ConocoPhillips Scandinavia and Lundin Energy Norway.

Aker BP’s contract for the KEG development project indicates total investments projected at around NOK1.7bn ($195m). The project is pending approval from PDO authorities.

The project development includes a subsea tie-back of around 8km connected to the production vessel on the Alvheim field (Alvheim FPSO).

The alliance will use Subsea 7’s spoolbase at Vigra for fabrication of the pipelines, and Aker Solutions’ facilities in Brazil, Malaysia, Norway and the UK, to deliver the works.

Aker Solutions executive vice-president and subsea business head Maria Peralta said: “This award continues our long-standing collaboration with Aker BP, through the Aker BP Subsea Alliance.

“The partnership enables Aker Solutions to engage early in the field development process, optimising design solutions and contributing to a positive final investment decision.

“We look forward to continuing our alliance with Aker BP, with a continued strong focus on safe and efficient operations while helping to reduce the carbon footprint.”