Shell Extends Aker Solutions Contract for Norwegian Gas Plant
Posted 19/09/2023 13:12
The contract extension, executed by Shell as a technical service provider to Gassco, covers maintenance and modification services and will run for an additional four years, potentially until September 2028. In financial terms, this extension falls into the category of a "sizeable contract," typically valued between NOK 0.5 billion (over $46.4 million) and NOK 1.5 billion (more than $139.3 million).
Aker Solutions has been actively involved with the Nyhamna facility since 2007, delivering projects and services in support of its operations. The plant plays a crucial role in processing natural gas produced from the deep-water Ormen Lange field off Norway's coast before it is transported to the UK.
The Ormen Lange field, located 120 kilometers (75 miles) off the Norwegian coast, has been operational since 2007 and supplies approximately 20% of the UK's gas requirements. The field operates without a platform, utilizing 19 wells distributed across four templates on the seafloor. Two 30-inch pipelines transport the gas to the Nyhamna terminal for processing, where it is separated into natural gas and condensate for export via Sleipner to Easington, UK.
Shell operates the Ormen Lange project with a 17.81% interest, partnering with Petoro (36.48%), Equinor (25.34%), PGNiG Upstream Norway (14.02%), and Vår Energi (6.33%). In 2022, Shell's plan for the Ormen Lange wet gas subsea compression project was approved, paving the way for increased natural gas recovery rates in the Ormen Lange field.