SLB (NYSE: SLB) has secured a significant contract for an integrated engineering, procurement, construction, and installation (EPCI) project in the North Sea. The contract was awarded by OKEA to SLB’s OneSubsea™ joint venture and Subsea7.
The project, known as the Bestla Project, aims to accelerate the subsea tieback delivery to aging platforms in the North Sea for profitable and sustainable marginal field development. It involves a two-well development with a 13-kilometer tieback to the Brage Platform.
Under the contract, SLB OneSubsea will deliver the subsea production system, which includes subsea trees, a template, an umbilical, and a control system. Subsea7 will be responsible for installing the subsea production system, designing and installing the flowline systems, spools, and protection measures.
“We are excited to continue our partnership with OKEA and contribute to the development of the Bestla Project,” said Mads Hjelmeland, CEO of SLB OneSubsea. “Our collaboration has enabled us to simplify the field layout and secure the necessary equipment and vessel capacity for the project, ensuring efficient and timely delivery.”
The Bestla Project represents the first commercially viable field development plan submitted for the Brasse development. It is compliant with NCS2017+ standards for subsea production systems in the Norwegian Continental Shelf.
The field is estimated to contain 24 million barrels of oil equivalent, with first oil production targeted for the fourth quarter of 2026.
SLB OneSubsea is a joint venture between SLB, Aker Solutions, and Subsea7, focused on driving innovation in subsea operations and optimizing oil and gas production. The Subsea Integration Alliance combines the expertise of SLB OneSubsea and Subsea7 in field development planning, project delivery, and lifecycle solutions.
In addition to the information provided in the article, there are several key facts, market trends, forecasts, challenges, and controversies associated with SLB being awarded the contract for the Subsea Development in the North Sea:
1. Current Market Trends:
– Increasing demand for subsea tieback projects: Subsea tiebacks offer a cost-effective solution to develop marginal fields by connecting them to existing infrastructure.
– Growing focus on sustainable and profitable field development: Companies are looking for innovative ways to develop marginal fields to maximize oil and gas production while ensuring long-term profitability.
2. Forecasts:
– Subsea development projects: The global subsea market is expected to grow at a CAGR of 11.5% between 2021 and 2026, driven by the increasing exploration and production activities in offshore areas.
– North Sea market: The North Sea continues to be a significant region for subsea development, with several ongoing and planned projects, indicating a positive outlook for the market.
3. Key Challenges and Controversies:
– Environmental concerns: Offshore oil and gas activities raise environmental concerns, including the risk of oil spills, impact on marine life, and carbon emissions. Companies need to address these concerns while developing subsea projects.
– Cost and profitability: Subsea projects can be capital-intensive and require significant upfront investment. Companies need to carefully evaluate the economic viability of such projects and ensure they are profitable in the long run.
Advantages of the SLB Awarded Contract for Subsea Development in the North Sea:
– Enhanced collaboration: SLB’s partnership with OKEA enables them to jointly work on field layout simplification and secure the necessary equipment and vessel capacity, leading to efficient project delivery.
– Compliant with industry standards: The Bestla Project is compliant with NCS2017+ standards, ensuring that it meets regulatory requirements and aligns with industry best practices.
– Maximizing field potential: The development of the Brasse field, estimated to contain 24 million barrels of oil equivalent, will help maximize the productive potential of the North Sea region.
– Leveraging expertise: The collaboration between SLB, Aker Solutions, and Subsea7 through SLB OneSubsea and Subsea Integration Alliance brings together their expertise in subsea operations, field development planning, and project delivery.
– Long-term sustainability: The project aims to enable profitable and sustainable marginal field development, contributing to the overall sustainability of the North Sea oil and gas industry.
Suggested Related Links:
– SLB Official Website
– Subsea7 Official Website