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Subsea7 - News - January 25, 2005

Langeled Award for Subsea 7

Global underwater contractor Subsea 7 today announced a contract award from Statoil on behalf of the Langeled Group with Norsk Hydro as operator, for tie-in of the Langeled pipeline to subsea valves and structures. The contract, which was awarded to The Stolt Subsea 7 Joint venture, is valued in the region of $60 million.

The work will be performed under the existing Statoil Hyperbaric Welding and Diving Services Contingency Contract, which has been extended to accommodate this workscope.

The offshore work for the Langeled tie-in project will be performed in three campaigns from the 3rd quarter of 2005 to the 4th quarter of 2006 and in addition to the tie-in of the 1,200 kilometre long Langeled pipeline, the work scope will include the fabrication and tie-in of spools and the removal of temporary riser installation aids.

Robin Davies, North Sea Regional Vice President said, “Subsea 7 is delighted with this award by the Langeled Group which will see us working on the worlds longest subsea export pipeline, in Norway’s second largest gas field. This is an exciting project which will demonstrate Subsea 7’s many capabilities”.

Ends 25 January 2005

###

For more information, contact:

Lyndsay Cruickshank on +44 1224 344606
Carl Håkon Jarstø on +47 518 37 496


Notes to editors:

1. Subsea 7 is one of the world’s leading subsea engineering contractors. The company has offshore operations supported out of the UK, Norway, Asia Pacific, Brazil, Gulf of Mexico, West Africa, Middle East and the Caspian and employs 3000 world-wide. Subsea 7 has a fleet of remotely operated vehicles (ROVs), four pipeline construction yards and 14 modern, high specification dynamically positioned ships capable of deepwater reeled and flexible pipelay, deepwater subsea construction and saturation diving. Website: www.subsea7.com

2. Ormen Lange is the largest gas field under development on the Norwegian continental shelf. It is located 100 km off the northwest coast of Norway at a water depth of 800 to 1,100 meters. The field comes on stream in October 2007. The Langeled Transportation system will bring processed Ormen Lange gas in a 1,200 km subsea pipeline from Nyhamna in Mid-Norway via Sleipner to Easington. The total investment cost for the Ormen Lange project development is estimated at approx. GBP 5.7 billion.

3. The Langeled joint venture, comprising Ormen Lange owners, ConocoPhillips and Gassco, has been established to construct, operate and own the transportation system from Nyhamna to Easington.
Hydro is operator of Langeled in the planning and development phase. Statoil has the management of the gas export pipeline project in co-operation with Hydro. The participants in the Langeled Joint Venture are: Hydro, Gassco, Petoro, Shell, Statoil, BP Norway AS, ExxonMobil and ConocoPhillips.



 


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