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Subsea 7 Fishes Out $60m Jette Deal

09 September 2011

Oslo-listed offshore engineering contractor Subsea 7 has scooped a $60 million equipment contract at the Jette field off Norway.

The contract with Det norske oljeselsakp is for the tie-back of two satellite wells in the field to the Jotun B platform.

Subsea 7 will provide engineering, procurement, fabrication and installation for the North Sea project.

It involves installing a six kilometre flexible flowline and jumpers and the installation of a six kilometre integrated services umbilical, Christmas tree well assemblies, protection structures and diver assisted tie-ins.

Engineering will commence immediately with offshore operations in Autumn 2012.

"We are very pleased to have been awarded this contract from Det norske for their first field development”, commented Stuart Fitzgerald, Subsea 7’s vice president in Norway.

"This award demonstrates our ability to provide a full range of safe and reliable project solutions which are tailored for our clients’ needs”, he said.

Subsea 7 is a seabed-to-surface engineering, construction and services contractor to the offshore energy industry worldwide, providing integrated services from planning to design to delivery.

Its shares were trading at 120.80 NOK ($22.40), up 0.7%, after Thursday's announcement of the deal.

Jette contains about 14 million barrels of oil equivalents, based on a 30 percent recovery rate, Det Norske announced on 5 September.

The Norwegian independent, which has a 63% working interest in the field, expects production to start in the first quarter of 2013, with daily production in the first year of around 14,000 barrels.