Det norske forms offshore Norway alliance with Aker, Subsea 7

Offshore staff

TRONDHEIM, NorwayDet norske oljeselskap, Aker Solutions, and Subsea 7 have agreed to a collaboration model for oil and gas field developments offshore Norway.

Aker Solutions will provide experience in front-end engineering, brownfield modifications and subsea systems, with Subsea 7 adding its capabilities in engineering, procurement, installation, and commissioning of subsea umbilicals, risers, and flowlines (SURF).

The operator and contractors will work as an integrated team to determine the most cost-effective solutions for developing Det norske’s Norwegian subsea field portfolio.

Previously, Det norske points out, field developments have typically been managed on a project-by-project basis that limits re-use of technology and solutions.

Ceo Karl Johnny Hersvik said: “Our industry needs to find new, more sustainable ways of working on oil and gas developments.”

The aim is that by forming an integrated project management team with specialists from all three companies, this will assist continuity from one field development to another, with the resultant re-deployment of solutions and technology leading to lower costs, shortened development times, and more efficient work methods.

All parties will share both risks and rewards.

Aker Solutions CEO Luis Araujo said: “We see this as a new and exciting way of working together as operator and suppliers with many potential benefits, not only for us individually as companies but also for the entire industry as we find more effective collaboration methods.”

Jean Cahuzac, CEO of Subsea 7, added: “Working together as one integrated team across developments will promote greater sharing of knowledge and best practices.”

In June, Det norske awarded Aker Solutions a four-year framework agreement to provide subsea production systems and services for its Norwegian field developments and another to Subsea 7 for SURF services.

Potentially, the contracts would be worth NOK 2.8 billion ($340 million) combined, although the values may change depending on how much work Det norske calls for under the contracts.

A steering committee comprising senior executives from each company will comprise overall management of the alliance, with the project management team led by a manager from Det norske.

Hersvik said: “We don’t want just an integrated team or a shadow organization, but one project management organization with the ‘best’ personnel from each company to extract the greatest synergies.”


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