Subsea 7, TechnipFMC, and Aker Solutions were awarded by VNG Norge for Front End Engineering and Design (FEED) contracts on Pil & Bue project in the Norwegian Sea. The contracts are based on a prequalification of the tenderers, but expected to commence in Q4 2017. According to the agreements, Subsea7 and TechnipFMC will handled Subsea structures, Umbilicals, Risers & Flowlines job, while TechnipFMC and Aker Solutions will handle Subsea Production Systems. The finance details of the contract were no released, but the job is import for all the three offshore operations, which are suffering from serious downtrend in new orders during the latest months after drop of oil prices.
Earlier this month, VNG Norge announced DG2 decision for the Pil & Bue project. The company announced it plans to have a final investment decision for the project by the end of this year.
The Pil & Bue project, which is in PL 586, will be developed as a tie-back to the nearby Njord platform. The project has total estimated resources of 90-200 MMboe. VNG Norge is the operator of the project with 30% stake, partnering with Faroe Petroleum (25%) and Point Resources (45%).