New major billion-kroner contract for Aibel

Aibel has been awarded a contract by Equinor, on behalf of the Oseberg license partners, for engineering, procurement, construction and installation (EPCI) for partly electrification of the Oseberg Field Centre and Oseberg South. The contract also includes upgrade of the gas processing capacity at the Oseberg Field Centre and has an estimated value of more than NOK 4 billion.

Oseberg Field Centre photo Øyvind Sætre Aibel
Aibel will carry out extensive work at Oseberg. All photos: Øyvind Sætre/Aibel

Aibel estimates that the project execution will require approx. 1,300 man-years. The award succeeds Aibel’s completion of the front-end engineering and design (FEED) of the project, which aims to maximise gas exports from Oseberg and at the same time establish a solution for electrification of the gas compressors. This will reduce CO2 emissions from offshore production by approx. 320,000 tonnes per year.

The contract is awarded only a few days after Aibel was awarded four Equinor contracts with a total value of around NOK 5 billion, including options. This week’s awards secure contracts for almost NOK 10 billion and is very welcomed according to Aibel's President and CEO.

"This week we have consolidated our position as the leading supplier of solutions for electrification of offshore and onshore production and processing plants. We are proud to play a central role in the work to decarbonise Norwegian oil and gas production. As known, the Norwegian oil and gas industry has an ambition to reduce CO2 emissions from the shelf by 40 percent within 2030," says Mads Andersen, President and CEO of Aibel.

"The Oseberg contract means that for the first time the share of renewables in Aibel's order backlog is greater than the oil and gas share. Renewables now account for more than 60 percent of the order backlog of approx. NOK 14 billion, of which offshore wind and electrification roughly account for an equal share. This is a milestone in our transformation towards renewables," Andersen adds.

Aibel President and CEO Mads Andersen landscape photo Øyvind Sætre Aibel
Mads Andersen, President and CEO of Aibel.

The project execution will be carried out at Aibel's offices in Bergen and Stavanger, with support from the offices in Haugesund and Oslo. The assignment also includes construction of three new modules for the Oseberg Field Centre which will include equipment for electrically powered compressors and electric power reception from shore. The modules will be built at Aibel's yard in Haugesund. In addition, Aibel will carry out the associated integration work offshore and at the onshore facility at Kollsnes, where the company will, among other things, provide the electrical installations for a new substation.

The project will start up immediately will be completed in the summer of 2026. The contract requires regulatory approval of the project.