Norwegian engineering company Aker Solutions has secured a letter of intent from Equinor to supply a subsea system for the Breidablikk project.

Breidablikk is a major oil discovery on the Norwegian Continental Shelf located north-east of the Grane field in the North Sea.

It is planned to be developed as a subsea field with a tie-back to the Grane platform.

Equinor and partners are expected to take a final investment decision (FID) on the project later this year.

Aker Solutions chief executive officer Luis Araujo said: “We are delighted to be awarded a letter of intent by Equinor, which will lead to more activity at many of our facilities in Norway and beyond.”

Aker Solutions to deliver complete subsea production system for the project

Under the contract, Aker solutions will be responsible for the delivery of a complete subsea production system, and associated equipment that includes 15 subsea trees in the first phase.

The potential contract value is nearly NOK2bn ($206.5m), excluding options.

The company is expected to carry out the contract work at its locations in Fornebu, Egersund, Tranby and Ågotnes,

Additional deliveries for the contract will come from Brazil, Malaysia and the UK.

However, the letter of intent secured by Aker Solutions is subject to Equinor and partners’ FID on the Breidablikk development and a final approval of the project by Norwegian authorities.

Recently, Subsea 7 has awarded a contract to Aker Solutions for the delivery of umbilicals for Murphy Exploration and Production Company, USA’s King’s Quay development in the US Gulf of Mexico.

Under the contract, Aker Solutions deliver 22km of dynamic steel-tube umbilicals and distribution equipment to connect the King’s Quay floating production system (FPS) to the Samurai, Khaleesi and Mormont deepwater developments.