Vaar Energi has launched a tender for a contract covering fabrication and installation of subsea equipment for its entire operated portfolio.
The approach, designed to encourage joint solutions through cooperation, is in contrast to the more traditional model with several separate sub-contracts and is intended to provide a means of coping with rising costs in the sector.
A recent Rystad Energy report calls Norway the world’s top market for subsea tie-back projects in coming years, but warns that it is facing an inflation-driven cost increase of $6.5 billion on upcoming contract awards for goods and services in the offshore oil and gas industry through to 2026.
The decision to turn to a new contracting model is similar to the approach seen in Aker BP’s alliance model for subsea equipment with Aker Solutions and Subsea 7, which has been regarded successful by many observers.
Annethe Gjerde, vice president, procurement & contracts, said Vaar Energi believes strategic cooperation between suppliers will lead to improved and more efficient end-solutions.
“Early involvement in projects secures more efficient planning and implementation. We also believe that the model will provide added value for all parties, as well as contribute to a sustainable development,” she said.
Chief executive Torger Rod said the company is continuously seeking ways to work smarter.
“We see that a broader, long-term and more open collaboration between suppliers and operators reduces costs and increases efficiencies,” he said.
The company’s plans call for a high level of activity on the Norwegian Continental Shelf in the coming years. New discoveries in the North Sea and the Barents Sea, and the life extension of the Balder field, are examples of projects that will create exciting opportunities for the supplier industry.
The contract for fabrication and installation of subsea equipment is scheduled to be announced this quarter.