Chevron is to spend upwards of £550million on its Rosebank and Alder North Sea projects after announcing new contracts for the prospects
Three new contracts have been awarded for the Alder gas field, around 17 miles to the west of the Britannia Field.
Technip will provide engineering and installation of the subsea system, including 28km of pipe-in-pipe flow line. Work on the project will be carried out in Aberdeen, Newcastle and Evanton on the Cromarty Firth.
OneSubsea UK will design and manufacture two high pressure, high temperature trees and wellheads at their facility in Leeds, while the subsea control system is to be installed both on Alder and the Britannia Bridge Linked Platform by Aker Solutions at their Aberdeen base.
Chevron has a 70% stake as operator of the field. A final decision on developing the field, which is expected to produce 30,000boed, is expected by the end of the year.
Meanwhile OneSubsea UK has also won the subsea equipment contract for the Rosebank project, with work to be carried out at sites across the UK.
The values of the individual contracts were not being disclosed.
“These projects are of great importance to Chevron’s growth strategy in the UK, representing new production West of Shetland and in the Central North Sea,” said Craig May, Managing Director of Chevron Upstream Europe.
“These contract awards, made prior to final investment decisions represent long lead item commitments to enable us to protect schedules in a very competitive market for goods and services.
“They also demonstrate our ongoing belief in the UKCS as a place to invest, and our confidence in the expertise of the UK supply chain, particularly in subsea design, engineering and manufacturing.
“Both projects have received support from UK government efforts to stimulate new developments through field allowances. This support further demonstrates the importance of industry and government working together to maximise the economic production of the UK’s hydrocarbon reserve.”
The Rosebank field, which Chevron operates with a 40% stake, is due for a final investment decision in 2014 after front-end engineering work began on the discover, 80km north west of Shetland, last summer.
Chevron recently submitted environmental statements and field development plans for the £4billion field to the government for approval.
“The North Sea is seeing a resurgence of investment and it is great to see companies like Chevron recognising that ’made in Britain’ is a hallmark for the highest quality,” said energy minister Michael Fallon.
“From Aberdeen, Leeds and Newcastle this half a billion pound investment will support hundreds of highly skilled jobs in engineering, design and manufacturing.
“The Rosebank and Alder projects are worth billions of pounds and will unlock significant new oil and gas reserves. They demonstrate how development in technology and the right relationship between government and industry boosts production and provides energy security, jobs and investment.”
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