UK companies awarded more than $1.5 billion in field re-development contracts by BP
LONDON -- BP and its partners have awarded over £1 billion ($1.58 billion) in contracts to UK-based companies to provide services and equipment for the major re-development of the Schiehallion and Loyal oil fields, the Quad 204 project, to the west of Shetland.
The project to redevelop the fields, which are operated by BP on behalf of its partners, involves two main elements: a brand new floating production, storage and offloading vessel and a major upgrade of the subsea infrastructure that will lie on the seabed.
The latest in a series of awards has been made to OneSubsea which has been awarded a £65 million ($102 million) contract to manufacture subsea trees at the company’s facility in Leeds. This follows awards during 2012 and 2013 to companies based in Aberdeen, Fife, the Wirral, Newcastle, Leicester, Bristol, Shetland and many other UK locations.
Trevor Garlick, BP’s Regional President for the North Sea, said “The UK-based subsea engineering industry offers great expertise and capability and is fully engaged in developing highly-advanced equipment that will ensure we maximise recovery from this field until 2035 and beyond. It is great to see more than 30 companies from all parts of the UK working together to contribute towards this important offshore project.”
OneSubsea will manufacture 11 Christmas trees for the Schiehallion re-development. Fixed to the wellhead of a completed well, subsea trees are used on offshore oil and gas fields to monitor and control the production of a subsea well; they can also manage fluids or gas injected into the well.
Partners in the Quad 204 project are BP (36.3%), Shell (54.03%), OMV (4.84%) and Statoil (4.84%).