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MARKET WATCH: Oil price rises amid geopolitical tensions (Oil & Gas Journal, January 5, 2009, 11:25 AM)

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Subsea 7 awarded Troll B construction contract

Offshore staff

ABERDEEN, UK -- StatoilHydro has awarded Subsea 7 a $100 million contract for engineering, procurement, construction, and installation of the facilities for the Troll B gas injection project in the Norwegian sector of the North Sea.

The Troll B gas injection project will be developed with two separate subsea satellite wells, located respectively 3.5 km (2.1 mi) and 6.5 km (4 mi) south of the Troll B platform. The wells will be connected to the Troll B platform by a single gas injection pipeline and a control umbilical.

Subsea 7's scope is to engineer, procure, fabricate, and install a 6.5-km (4-mi) long 12-in. (30-cm) rigid pipeline, incorporating in-line and end structures for the connection to the satellite wells, in addition to the control umbilicals. Subsea 7 also will install two 200-metric ton (220-ton) satellite structures using the heavy lift capabilities of one of its new vessels.

Engineering and procurement activities will begin immediately and will be performed at Subsea 7's offices in Stavanger, Norway, the company says. Fabrication of the pipeline will be carried out in early 2009 at Subsea 7's new North Sea Spoolbase at Vigra on the northwest coast of Norway.

Pipelay operations are due to take place in 2009 and will use one of Subsea 7's specialized reeled pipelay vessels. The remainder of the offshore installation scope, which also involves burial of the umbilical and pre-commissioning activities on the complete pipeline system, will be performed in 2010.

The contract is a call-off of an option under Subsea 7's existing Troll O2 contract with StatoilHydro.

The Troll field is located on the Norwegian continental shelf, approximately 70 km (43 mi) northwest of Bergen, in water depths between 300 and 340 m (984 to 1,115 ft).

08/18/2008

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