Vår Energi’s Balder X project involves the redevelopment of Balder and Ringhorne field area on the Norwegian Continental Shelf
Vår Energi awards subsea contract for Balder X project to BHGE and Ocean Installer (Credit: Vår Energi)
A consortium made up of Baker Hughes, a GE company (BHGE) and Ocean Installer, has won a subsea contract from Vår Energi for the Balder X project in the Norwegian North Sea.
The contract covers engineering, procurement, construction and installation (EPCI) of subsea systems (SPS/SURF) needed for the redevelopment of the Balder and Ringhorne field area as part of the Balder X project.
The project is being undertaken to extend the life of the Jotun A FPSO up to 2045 by refurbishing it and relocating it to the Balder license PL 001.
As per current estimates, the Balder X Project will enable a total lifespan of over 80 years to the PL 001 license.
Vår Energi CEO Kristin Kragseth said: “We are pleased to award this important contract to the BHGE and Ocean Installer consortium. It will provide new activity to the world-class oil service industry we have in the Stavanger region.
“Both consortium companies a have strong local presence, and large portions of the construction and engineering work will come from local suppliers, securing employment in the region.”
Details of the subsea contract for the Balder X project
BHGE and Ocean Installer will carry out engineering, procurement, construction and installation of new subsea production systems (SPS), umbilicals, risers, and flowlines to the Jotun A FPSO. The consortium will also take up decommissioning and cleaning up the seabed by removing subsea systems and equipment that are no longer required at the Jotun field.
BHGE Norway and Denmark director Tom Huuse said: “Through our Subsea Connect approach, leveraging early engagement with our customer, we were able to optimise the development cost of this significant award. BHGE will bring a deep sense of history and experience to the region while delivering challenging projects with field proven technology through local execution to support on time delivery.”
The redevelopment of the Balder and Ringhorne fields will also involve major project activities in the future, said Vår Energi. As part of that, the life of the Balder FPSO will be extended up to 2030 along with drilling of 15 new production wells in the Balder field area and 11 such wells in the Ringhorne field area.
The Norwegian oil and gas company also intends to carry out exploration drilling campaigns apart from the production drilling campaign.
Last week, Vår Energi signed an agreement to acquire ExxonMobil’s non-operated interests across more than 20 producing fields on the Norwegian Continental Shelf for $4.5bn (£3.65bn).