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GE to manage subsea engineering for Cheviot in the North Sea

GE to manage subsea engineering for Cheviot in the North Sea

View all news from: Baker Hughes
View directory entry for: Baker Hughes

02 June 2017

GE Oil & Gas will work with Alpha Petroleum on the subsea infrastructure for the Cheviot oil field development in the UK northern North Sea.

Cheviot contains an estimated 55 MMbbl of oil and 20 MMboe of producible gas.

GE Oil & Gas will be responsible for early engineering, project management, and procurement activities for the project. The company will supply subsea trees, the associated control system, three manifolds, flexible jumpers, flowlines, risers and umbilicals, and will in addition provide subsea construction and installation services, and support commissioning.

GE Energy Financial Services is helping to raise debt financing for the project and could make an investment in the development pending UK government approval for the project, anticipated later this year.

Alpha Petroleum says it has been collaborating for more than 12 months with its backer, Petroleum Equity, and GE on the scope of delivery and equipment specifications.

Chief executive Andy Crouch said: "By taking this unconventional, collaborative approach, we have been able to really draw on GE’s expertise, enabling us to minimize costs and timescales.”

GE Oil & Gas Europe CEO Michele Stangarone added: "This represents another very positive example of how the traditional, transactional relationship between industry players is evolving into a partnership approach.”

Development will entail drilling 18 firm and five contingent wells, probably through Teekay’s Varg FPSO. First oil should follow in 2019 at a rate of around 30,000 b/d.