Subsea 7 has picked up a £186million contract to work on Dana Petroleum’s near-billion-pound Western Isles development about 100 miles east of Shetland.
The firm, which has a major base at Westhill, is to carry out work including engineering, procurement, construction and installation relating to pipelines on the project.
This will include building and installing two 1.5-mile pipeline bundles – sets of pipelines brought together in one casing – and a 6.8-mile gas export line.
These will be built at Subsea 7’s fabrication yard near Wick in Caithness.
Subsea 7 said engineering and project management would start immediately out of Aberdeen, with offshore work due to start next year.
Subsea 7’s vice-president for the UK and Canada, Steph McNeill, said: “The award of this prestigious contract from Dana is an endorsement of our unique bundle technology.
“We are grateful to Dana for choosing us to provide them with a cost-effective solution and look forward to helping them deliver this strategically-important development.”
Subsea 7 said the Dana work was not expected to create any additional jobs, but would provide continuing employment for the existing workforce.
The £989million Western Isles project will bring on stream two UK oil fields – Harris and Barra – about 100 miles east of Shetland in the northern North Sea.
Harris and Barra are estimated to contain recoverable oil reserves of more than 45million barrels.
The development will be a nine-well scheme using a new Sevan Marine-designed floating production vessel being built in China and is expected to have output of more than 40,000 barrels of oil equivalent a day when it comes into operation in 2015.
Dana has a 77% stake in the development and Japanese exploration and production company Cieco holds the remaining 23%.
It is expected to lead to up to 200 jobs, including about 20 additional posts at Dana in Aberdeen.
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