Shell awards major onshore contract to Kvaerner
19 Apr 2012
Oslo - A/S Norske Shell has awarded Kvaerner an NOK6-billion, EPCM contract for modifications and projects at the Ormen Lange/Nyhamna onshore facilities on the west coast of Norway.
The contract is a framework agreement with duration of six years, and options for additional two plus two years. The Nyhamna gas plant processes natural gas from the Ormen Lange gas field located in the Møre Basin in the southern part of the Norwegian Sea.
The contract scope includes all modifications and projects on the Ormen Lange/Nyhamna facility and is established to meet the expected, significant increased project activity over the next five to ten years. This includes the facilities at Nyhamna for gas from new fields such as Linnorm and Aasta Hansteen (formerly Luva).
FEED work will take place integrated with Shell in their offices in Aberdeen, and is expected to run until engineering starts at the end of 2012. Meanwhile, a site team will be mobilized to begin some minor modification work at Nyhamna.
Engineering and project management activities will be conducted by Kvaerner at Stord and engineering and modification work will be delivered by Aker Solutions’ offices in Oslo, Kristiansund and Tromsø.
When finalised, the sub-contract with Aker Solutions is expected to represent approximately NOK850-950 million. In addition, a large number of suppliers from Mid Norway will be involved in various project activities.
At least 500 employees are expected to be working in rotation on site at Nyhamna. In addition, more than 200 engineers and management will be working on the contract throughout the period. Of these, around 80 will, by the end of next year, be working out of Tromsø.
