Aker Solutions (AKSO.OL) has been awarded a contract from Shell UK (LON: SHEL) to build and deliver a platform for the supermajor’s Jackdaw gas field, east of Aberdeen.
The contract tasks Aker Splutions with engineering, procurement, construction, and installation (EPCI) of a not permanently attended installation (NPAI), and was valued at 2-3 billion NOK (£170-250 million).
The scope covers the complete wellhead platform, consisting of a topside and a steel jacket, as well as related load-out and offshore hook-up and commissioning.
Aker Solutions will fabricate the Wellhead platform at its yard in Verdal, Norway, and at its peak, the project will employ over 300 people.
The steel substructure, including a pre-drilling deck, will be delivered to Shell next year while the topside will arrive in 2024.
Shell made a final investment decision (FID) on the field last week, which at peak production could supply over 6% of projected UK North Sea gas production in the middle of this decade.
The field has been met with controversy recently, with Greenpeace taking the UK government to court over the approval of drilling and Extinction Rebellion protesting outside of Shell’s Aberdeen HQ yesterday.
The partnership has been secured following Aker Solutions’ completion of front-end engineering and design work (FEED), awarded in June 2019.
As part of this project, Aker Solutions will work alongside external suppliers Rambøll and Leirvik, who were part of developing the FEED.
Executive vice president and head of Aker Solutions’ topsides and facilities business Sturla Magnus said: “We are pleased that Shell selects us to develop a cost-effective platform for this major North Sea gas field.
“We will build on our strong topside solutions and executions model which involves reusing facilities and equipment and bringing onboard solid experience from similar developments from both internal Aker Solutions resources and external partners.”
Chief executive Kjetel Digre added: “We aim to be a leading supplier of energy solutions, and the Jackdaw development contributes to the ambition of the British government to boost domestic energy output to enhance energy security.
“The project forms part of our broader intent to both play a key role in the transformation of Europe’s energy sector and help accelerate security of supplies.”