£500 million Schiehallion contract awarded to Technip

A £500 million contract to help redevelop the Schiehallion oilfield west of Shetland has been awarded by BP to the UK arm of French company Technip.

The Quad 204 project will get under way next year. It will see the existing production and storage ship replaced along with much of the equipment from the seabed to the surface. In what

Technip said was its largest contract to date in the UK North Sea the company will be responsible for removing the old storage ship and installing the new one.

Technip will also supply and install 21 flexible risers, four umbilicals and various other equipment as well as installing 50 kilometres of pipeline.

The improved Schiehallion field should allow BP and partners to extract an additional 450 million barrels of oil and extend production to 2035. However, it remains to be seen whether the oil will continue to be brought ashore for storage at Sullom Voe or shipped direct to market from the field.

BP North Sea regional president Trevor Garlick said BP was investing in North Sea assets with growth potential and the Schiehallion and Loyal redevelopments were a key part of that approach. He added: “We look forward to working with Technip UK to deliver what is one of the UK’s largest ever subsea installation contracts.”

Technip senior vice-president Knut Boe said the company would be looking to expand its team in the Aberdeen area over the next year to handle the Quad 204 project and other recent contracts.

Technip specialises in project management, engineering and construction for the energy industry, operating in 48 countries with a workforce of 30,000.