TechnipFMC Gets Nod from VNG

VNG Norge, the Norwegian upstream arm of Germany's VNG, has issued a Letter of Intent (LOI) to TechnipFMC for the Fenja oil and gas field development on PL586 licence in the Norwegian Sea.

It is in respect of the engineering, procurement, construction and installation contract for the subsea production systems (SPS) and subsea structures, umbilicals, risers and flowlines (Surf). The final contract will be signed pending a final investment decision planned for December 2017, and subject to Norwegian authorities’ approval of the Fenja plan for development and operations (PDO).

Fenja is the new name for what were known as the Pil and Bue discoveries. PL586 licencees are VNG Norge operator with 30%, UK-listed Faroe Petroleum 25% and Norwegian independent Point Resources 45%. Total recoverable resource estimate is 80-155mn boe, of which 65-100mn boe liquids and 15-35mn boe gas on Pil, and 0-20mn barrels of oil on Bue.

A year ago the partners decided that a subsea tie-back to the Njord platform would be the best way to develop Fenja.

German gas firm VNG is 74.2%-owned by EnBW, a leading German power generator and supplier.

Mark Smedley