Subsea 7 awarded £100m contract for Culzean gas field

Subsea 7 will make and install underwater equipment for the new Culzean gas field in the central North Sea

Engineers in Aberdeen have won a £100m order to make and install underwater equipment for the new Culzean gas field.

Subsea 7, which is based in Luxembourg, is to lay 55km (34 miles) of pipeline in the central North Sea.

It will also provide seabed structures and links to the field's platforms.

The news follows a green light from regulators for Maersk Oil to develop the high-pressure, high temperature field located in the central North Sea.

It is expected to supply about 5% of the UK's gas demand after production begins in 2019, making Maersk one of the biggest five producers in the UK offshore sector.

The investment cost is estimated at £3bn, half of which is being spent in the UK.

Engineering yards in Hartlepool and Lowestoft have also won orders, including the jackets on which the topsides are placed, and bridges between the topsides.

The three topsides, including an accommodation platform, are being built in Singapore.

Subsea 7 is to start work immediately at its Aberdeen base, and offshore work is expected in 2017, with first production from 2019.

Phil Simons, the firm's vice-president for UK and Canada, said: "This large project awarded by Maersk Oil for their Culzean field development, confirms our reputation as a world-class provider of reliable and cost-effective SURF solutions.

"We look forward to collaborating with Maersk to ensure the safe and timely delivery of this significant gas production development."

Other developments

In other developments in the offshore industry, Aberdeen-based Faroe Petroleum has announced it is spending $17m (£11m) on UK North Sea assets being sold by Roc Oil.

These include 12% stakes in the producing Blane field, as well as the Enoch field, which has been out of production but is scheduled to resume.

Enquest, one of the North Sea's bigger independent drilling companies, has announced it is selling its new headquarters building in Aberdeen for £45m.

Having just taken occupancy, it has signed a 20-year lease with Rockspring Hanover, the property development company that now owns the eight-storey building.

After paying off debt on the construction, Enquest has gained £12m from the deal with which to pay off debt.