Independent oil and gas company Vår Energi has awarded a contract to oilfield services company Baker Hughes, a GE company (BHGE) and Norwegian subsea contractor Ocean Installer for the engineering, procurement, construction and installation (EPCI) of subsea systems and associated services for the Balder X project in the Norwegian sector of the North Sea. 

The ongoing Balder X Project is focused on redeveloping the Balder and Ringhorne fields on the Norwegian continental shelf (NCS). Redevelopment activities include refurbishing and relocating the Jotun A floating production storage and offloading unit (FPSO) to extend the production life to 2045 and extending the life of the Balder FPSO to 2030. It also includes drilling 15 new production wells in the Balder field area and 11 new production wells in the Ringhorne field area.

BHGE and Ocean Installer will engineer, procure, construct and install 16 new subsea production systems (SPS), umbilicals, risers and flowlines to the Jotun A FPSO. The firms will also carry out decommissioning work in the field.

“Our Subsea Connect approach is transforming the way we do business and bringing new efficiencies to subsea projects,” said Neil Saunders, President and CEO, Oilfield Equipment, BHGE. “Working closely with Vår Energi and Ocean Installer, we will deploy the key components of Subsea Connect, including early engagement, advanced field-proven technology, flexible partnerships and digital solutions to improve project economics.”

“The Balder X project is the largest award in Ocean Installer’s history, it doubles our order backlog and allows us to be part of Vår Energi’s first major development,” said Kevin Murphy, CEO, Ocean Installer.

Kristin Kragseth, CEO, Vår Energi, said the contract will give a boost to the local oil service industry in the Stavanger region. “Both companies have a strong local presence and large portions of the construction and engineering work will come from local suppliers, supporting employment in the region,” Kragseth said.