TechnipFMC (NYSE: FTI) has announced a “significant” contract to support the Shell (LON:SHEL) Jackdaw development in the UK North Sea.
The exact value has not been disclosed, but TechnipFMC said it is between $75 million – $250 million.
Under the deal, the energy services company will provide pipelay to tieback the new Jackdaw platform 18 miles to the Shearwater gas hub, which sits 140 miles east of Aberdeen.
TechnipFMC will also provide as an associated riser, spoolpieces, subsea structures, and umbilicals.
The firm has not confirmed where the contracted will be executed from.
It said the tieback will use pipe-in-pipe technology, which is designed for high pressure, high temperature use.
Jonathan Landes, president, subsea at TechnipFMC, commented, “We’re excited to embark on this significant project together in the UK North Sea.
“Our strong technical record and our ability to design, engineer, construct and install were key to our success in winning this award.”
The TechnipFMC contract comes after Shell took a final investment decision on Jackdaw in July following government approval.
Shell has previously said the scheme would see £500 million spent in the UK and, at its peak, could represent over 6% of projected UK North Sea gas production in the middle of this decade – enough to heat 1.4 million homes
The oil and gas giant has also highlighted that Jackdaw will have operational emissions of less than 1% of the whole UK North Sea.
It has, however, caught the attention of climate groups including Greenpeace and the “Stop Cambo” activist organisation.
A day after Shell took FID, Greenpeace launched a legal challenge against the UK Government’s decision to greenlight the development.
The NGO is currently seeking a judicial review of the decision made by the Department for Business, Energy and Industrial Strategy (BEIS) and the North Sea Transition Authority on environmental grounds.
Approval of Jackdaw, which had previously been subject to scrutiny by BEIS, came following Russia’s invasion of Ukraine which sent energy markets spiralling.
New Prime Minister Liz Truss’ energy plans include the lofty ambition of making the UK a net exporter by 2040.
Shares in TechnipFMC are trading at $8.96. Shell is trading at £23.38.
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