Reef Subsea Norway Bags Seismic System Installation Contract

Reef Subsea announced today that one of its Norwegian subsidiaries, Reef Subsea Norway, has been awarded a major contract by Statoil for the full seismic system installation of the Grane field offshore Norway.

The contract – worth over 2OOMNOK (over £22M) – will see all capabilities of the Reef Subsea Group called on: Subsea construction, Trenching and Dredging & Excavation. The duration of the project will run over 2013 and 2014, with engineering work commencing immediately.

The scope of work includes all activities necessary for the installation of the Permanent Reservoir Monitoring (PRM) system for the Grane field. This comprises the Project Management for the entire project including: engineering, logistics and material supply, mobilisation/demobilisation, and the installation of an umbilical riser, Sensor Array Terminators, Sensor Array Cables and Sensor Array Terminator Lead-in cables and associated protection structures.

There are almost 200km of seismic cables to be installed and buried and the System will have a receiver area of approximately 50km2 when completed in a water depth of around 130m. The purpose of the project is to facilitate Increased Oil Recovery (IOR) for the Grane field, located 185km of Haugesund. Grane is the first field on the Norwegian continental shelf to produce heavy crude oil.

The installation campaign shall take place in 2014 and will utilise several subsea construction vessels and equipment from the all the Reef Subsea companies: the Polar Prince, the Reef Larissa, the new heavy HD3 Plough and Dredging systems. The total offshore duration of the project is expected to be around 100 days and all works shall be managed from Reef Subsea’s offices in Bergen with engineering commencing in December 2012.

Tim Sheehan, Chief Operating Officer of the Reef Subsea Group, stated “We are delighted with the confidence Statoil placed in us for this major integrated project. This award confirms the validity of our business model with three complementary businesses IMR & Construction, Power & Umbilical, Dredging & Excavation able to bring together integrated services when requested by our clients’ projects. We look forward to offering a first-class project delivery to Statoil.”

Duncan MacPherson, Managing Director of Reef Subsea Norway, commented: “We are very pleased to work together with Statoil on this project to facilitate Increased Oil Recovery from the Grane field. This award of this contract is a major achievement for our team and confirms our strategy of building a robust project and engineering capability in Bergen capable of undertaking such large and complex scopes of work for our clients.”

Reef Subsea is an international group providing cost-effective integrated subsea services – IMR & construction, installation & burial and dredging & excavation – to the oil and gas and renewables industries. Its specialised subsidiaries provide operators and contractors with highly experienced personnel, key subsea technologies and construction support vessels. Reef Subsea serves its clients in the deep-water or demanding environments of the North Sea, Americas, Middle-East and South-East Asia areas. Reef Subsea is a 50/50 owned company of GC Rieber Shipping and HitecVision.

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Press Release, December 13, 2012