OKEA and Aker Solutions have signed a contract pertaining to the Draugen electrification project, offshore Norway with the latter selected as the main contractor for engineering, procurement, construction, and installation (EPCI).

Without revealing the exact value of the contract, Aker Solutions said that it is in the range of NOK2.5bn ($243m) and NOK4bn ($388m).

The signing of the contract follows a letter of intent (LOI) announced by Aker Solutions in December 2022. The LOI in turn follows the completion of front-end engineering and design (FEED) work carried out by the Norwegian contractor.

The project calls for major modifications to be made to the existing platform at the Draugen oil field so that it receives power from shore through a cable. This will replace the existing electricity generation from gas turbines at the platform and offset CO2 emissions by nearly 200,000 tonnes per annum from 2027.

So far, the Draugen platform has been run on the power generated by using the associated gas produced from the field.

Aker Solutions executive vice president and electrification, maintenance and modifications (EMM) business head Paal Eikeseth said: “Replacing the current power generation from gas turbines at the offshore platform and instead electrifying these from shore will enable production of oil and gas from Draugen with significant reductions in CO2 emissions.

“Lifetime-extension of these platforms are of crucial importance for the increasing need for energy and energy security in Europe.”

The Draugen oil field has been produced since 1993. Owing to the electrification project, its lifetime-extension could result in 20 years of production and value generation, said Aker Solutions.

The Norwegian firm said that the project has started up and is slated to be wrapped up in 2026. The project is managed from the company’s offices in Trondheim in Norway.

Last December, OKEA and Equinor announced a collaboration project to electrify the Draugen and Njord A platforms. The former will be responsible for developing the electricity infrastructure from shore to Draugen, while Equinor will be responsible for the cable from the Draugen platform to Njord and modifications and upgrades on the Njord A platform.

Investments for the entire electrification project are estimated to be nearly NOK7.3bn ($711m), which are shared between Draugen and the licenses producing over the Njord field.