OGN Group has confirmed the award of a deal to build a new 800-tonne processing module for the North Sea, understood to be from ConocoPhillips, for fellow US operator Chevron’s Alder high-pressure, high-temperature field.
In a statement on Tuesday, OGN did not reveal
the identity of the company that placed the order, saying instead it was from a
“leading international oil and gas operator” and “well-respected blue chip
However, as reported by Upstream on Friday,
sources said OGN signed a contract on 31 January with ConocoPhillips, which is
acting as operator for construction of the Alder module in its capacity as
Chevron’s partner in the host Britannia facilities.
OGN chief executive David Edwards said in the
statement: “We are exceptionally proud to have been awarded this prestigious
contract from such a well-respected ‘blue chip’ oil and gas operator. It
is a further endorsement of the expertise and experience that the UK oil and
gas supply chain can offer the industry.”
OGN said it will “fabricate and pre-commission
the module incorporating key process equipment, including a primary separator,
condensate heater, gas cooler, water degasser, hydro-cyclones and condensate
A workforce of up to 500 will carry out the work
at OGN’s Hadrian yard on the River Tyne. Work is expected to last 16 months.
Alder, in Block 15/29a, about 160 kilometres
offshore, is set to be developed through a single subsea well tied back to the
Britannia facilities in Block 16/26, about 28 kilometres away.
UK Energy and Business Minister Michael Fallon
said: “This multi-million pound deal is a fantastic boost for manufacturing on
Tyneside. It will create outstanding job opportunities for local people and
support national growth.
“British skills and expertise in the oil and gas
industry are second to none and this deal just shows how attractive the UK
remains to investors."