Shell Extends Ormen Lange Contract with AGR

- Shell Extends Ormen Lange Contract with AGR

Tuesday, June 21, 2011
AGR Group ASA

Norske Shell AS is extending its use of AGR's deep-water excavation technology and expertise on the Ormen Lange field.

Originally, a £9m (NOK84m) deal announced in February between the Aberdeen-based Excavation & Trenching arm of AGR Drilling Services and Norske Shell was to last until June 2, 2011.

Now Norske Shell has called upon AGR to provide its excavation spread for a further 48 days. This extends the contract until July 20, with further options until August 20. The extension to July 20 increases the contract value to approximately £16m (NOK141m).

AGR's ClayCutter X™ route preparation tool is being used on the project to excavate seabed highs.

Its powerful seawater jetting system will enable Shell to install the Ormen Lange Northern template, plus associated pipelines and umbilicals.

Despite the short turnaround period between the awarding of the contract in February and arrival in the field in early May, vessel mobilisation was completed safely and on schedule.

AGR's VP of Excavation & Trenching, John Sands, said, "We are delighted to receive this substantial increase in scope from Shell. The ClayCutter X™ spread has again proven its ability to add value to subsea projects. Shell's fast-track approach to the project presented a number of challenges which were met to the client's complete satisfaction."

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Subsea 7 Bags Shell Contract for Ormen Lange Field

Subsea 7 Bags Shell Contract for Ormen Lange Field

Monday, April 18, 2011
Subsea 7 S.A.

Subsea 7 announced the award of a contract with A/S Norske Shell for subsea pipeline installation services for the Ormen Lange Northern Field Development – Mid North Project in the Norwegian Sea.

The work is the first call-off under Subsea 7's Frame Agreement with Shell for Pipeline Installation services in the North Sea region awarded in September 2010, and the call-off is valued at approximately $70 million.

The Mid North Project will be developed with a new subsea template located approximately 6 km north of the existing subsea facilities on Ormen Lange in around 900m water depth, and will be tiedback to Ormen Lange by two 12" Production pipelines, a 6" service pipeline and a control umbilical.

Subsea 7's scope is to fabricate and install the two 6 km long 12" rigid pipelines and the 6" service pipeline, and installation of the control umbilical. Furthermore, Subsea 7 will perform all subsea connections and pre-commissioning activities on the new pipelines.

Engineering and procurement activities will commence immediately and will be performed at Subsea 7's offices in Stavanger, Norway. Fabrication of the pipeline will be carried out at Subsea 7's North Sea Spoolbase at Vigra on the north-west coast of Norway, in early 2012. Pipelay operations are due to commence in early 2012 and will utilize one of Subsea 7's specialized reeled pipelay vessels.The remainder of the offshore installation scope will be performed in summer 2012, utilizing Subsea 7's specialized offshore construction vessels suitable for deepwater subsea construction work.

The Ormen Lange field is located in the Norwegian Continental Shelf, approximately 130 km northwest of Kristiansund, in water depths between 850m and 940m.