Tyneside firms land significant subsea projects in the face of oil industry woes

Technip's Walker operation will supply parts for the Glenlivet oil field, off Shetland, while FES will supply a Nigerian offshore project

www.crestphotography.co.uk Managing director of FES International Rob Anderson
Managing director of FES International Rob Anderson

The Newcastle division of engineering firm Technip will supply umbilicals for a lucrative new North Sea oil field development project landed by its French parent.

Walker-based Technip Umbilicals will manufacturer the steel tube umbilicals used to operate subsea structures on the Glenlivet field, north west of Shetland.

The project forms part of a major piece of work coordinated by Technip’s Oslo operating centre which will see the firm provide services to Total E&P UK which owns 70% of the Glenlivet field.

Technip has already been involved in the nearby Edradour Subsea Development for the firm, which is the UK exploration arm of French energy firm Total.

This latest project win is significant for Technip’s Walker facility, which opened for business in May 2014 following £3.6m of Regional Growth Fund investment.

Technip’s overall involvement in the project will include fabrication and installation of a 12” production pipeline at the firm’s Evanton base, and fabrication and installation of other components such as pipeline end manifolds, flowline end terminations and flexible trails.

Vessels from Technip’s fleet will install the structures in the summer seasons of 2016 and 2017.

Knut Boe, Technip’s president North Sea Canada, said: “It is very good to see the benefits of the synergies between these two projects being realized by Total’s award of this extra scope to Technip.”

The new Technip building on the bank of the river Tyne at Wallsend
The new Technip building on the bank of the river Tyne at Wallsend

Technip Umbilicals employs 600 people across its Walker site and Cobalt Business Park offices. The subsidiary also operates bases in the US, Angola and Malaysia, and last year saw operating profits rise to £5.04m.

Umbilicals are an assembly of tubes and thermoplastic hoses which relay chemicals and power between a platform and subsea equipment.

News of Technip’s contract win coincided with a $2m win for fellow North East subsea engineers FES International.

The Ashington-based firm will supply Bend Stiffener Connectors to oil and gas contractor Saipem, to be used on a Nigerian offshore development.

FES’ products will connect umbilicals to a floating production storage and offloading vessel, working on the Egina field, which is being developed by Total.

The field is currently under development and the production is scheduled to begin by the end of 2017.

FES’ managing director, Rob Anderson, said: “We have a successful track-record of working with Saipem, and are delighted to have been chosen by them once again. Repeat business like this is an affirmation of the quality of our products and services.

“We’ve provided fluid transfer solutions for Total projects all over the world, such as CLOV, Martin Linge and Ichthys and we’re proud to be adding this one to the growing list.”

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