Operator Chevron North Sea Ltd. has confirmed a number of contract awards for its deepwater Rosebank field west of Shetland and its shallow-water Alder project offshore the UK worth more than US $846 million (UK £550 million) in total.

OneSubsea UK Ltd. (a subsidiary of the recently formed JV between Schlumberger and Cameron) was highlighted as the winner of the subsea equipment vendor contract for the Rosebank project. The contract package includes the engineering, supply, and manufacturing of subsea manifolds, subsea trees and subsea control systems. Equipment manufacturing will take place at various locations in the UK, including at the company’s facility in Leeds.

Three contracts were also awarded for the Alder project, including another for OneSubsea UK. The contractor clinched an award for the design, manufacture and supply of two high pressure, high temperature (HPHT) vertical, subsea monobore trees and wellheads.

Detailed engineering, procurement, installation and commissioning of the complete subsea system for Alder, meanwhile, including the main subsea manifold, subsea isolation valve manifold, 28 km of pipe-in-pipe flow line, umbilical and tie-in spools, went to Technip. Design, manufacture and supply of the subsea control system, including the hydraulic and electrical components to be installed both subsea and on the Britannia Bridge Linked Platform (BLP), went to Aker Solutions.

“These projects are of great importance to Chevron’s growth strategy in the UK, representing new production West of Shetland and in the Central North Sea,” said Craig May, Managing Director of Chevron Upstream Europe. “These contract awards, made prior to Final Investment Decisions (FID), represent long lead item commitments to enable us to protect schedules in a very competitive market for goods and services. They also demonstrate our ongoing belief in the UKCS as a place to invest, and our confidence in the expertise of the UK supply chain, particularly in subsea design, engineering and manufacturing.

“Both projects have received support from UK government efforts to stimulate new developments through field allowances. This support further demonstrates the importance of industry and government working together to maximise the economic production of the UK’s hydrocarbon reserves,” added May.

Rosebank has achieved two milestone events recently, added Chevron, with the submission to the UK government for approval of both the Environmental Statement and the Field Development Plan.

Chevron estimates Rosebank to hold up to 698 MMbbl of proven and probable oil reserves in place. The project will see the development of the Paleocene Colsay-1 South and Colsay-3 reservoirs of the Rosebank field, and the potential further appraisal drilling of the greater Rosebank area, which comprises the Rosebank South, Rosebank North and Colsay-1 North reservoirs.

The infield infrastructure will be installed in 2015 and 2016 before the 99,750-tonne Rosebank FPSO, being built at Hyundai Heavy Industries in South Korea, is installed in 2017. Oil production is expected to peak at 98,198 b/d in 2019, while peak gas production is expected to hit 3.8 MMcm/d in 2022.

Rosebank lies in 1,100 m (3,609 ft) of water, 130 km northwest of the Shetland Islands.

Chevron holds a 40% interest in the field, with Statoil holding 30%, OMV 20% and Dong 10%.

Offshore