The duration of the agreement is five years plus options for an additional five years.
All project phases are included in the agreement, from various study phases and pre-engineering work to the entire execution phase of an assignment; from detailed engineering to construction, installation, and completion.
Centrica says it plans to begin with work related to the Butch field in the southern part of the North Sea. The field was discovered in 2011 and is situated 13 km (8 mi) east of the Ula field. The Butch field will be developed as a subsea tie-in to the Ula field. The processing will be executed at Ula before the oil is exported through pipelines to Ekofisk and onward into Teesside in England. The gas will be injected into the Ula reservoir.
This comes after Friday’s news that Centrica also awarded Subsea 7 and DNV GL agreements as part of a strategic plan dealing with its Norwegian continental shelf projects.
The company said the three agreements are based on a strategic partner alliance (SPA) model covering all phases of project execution, with duration of up to 10 years. The first call-off will be for front-end engineering and design for the Butch development in the North Sea. Aibel will deliver design, engineering and fabrication; Subsea 7 will provide pipelines, umbilicals and subsea service; while DNV GL will verify the work done.
Centrica said that “the objective is to establish a long-term relationship between Centrica and the suppliers, to create value and predictability.”
“Centrica is about to embark on its first operated field development in the North Sea, the Butch field. We want to build expertise and capacity over time. This is why we are entering SPA agreements with strong suppliers, who have extensive experience with field developments on the Norwegian continental shelf,” says Vice President - Projects Arne Bjørlo of Centrica.
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