Aker BP enters into long-term framework agreements

7. April 2017

The Framework agreements were signed 7 April at Aker BPs headquarter. From left: Jippe de Boer (Tender manager, Heerema Marine Contractors), Jan Arve Haugan (CEO, Kvaerner), Anne Marit Panengstuen (President and CEO, Siemens), Olav Henriksen (SVP Projects, Aker BP), Borghild Lunde (SVP, ABB Oil and Gas) og Knut Sandvik (EVP Head of Projects, Aker Solutions). Photo Aker BP

Aker BP ASA (Aker BP) has in international competition entered into long-term framework agreements with key suppliers of engineering services, construction, electro/ IT/ control room systems as well as transport and installation of fixed facilities offshore.

Aker BP aims to plan and execute field development projects on Aker BP-operated fields in a safe and very cost effective manner. The company’s ambition is thus to increase the productivity, quality, flow- and time efficiency throughout the value chain, and thereby increase the value creation and competitiveness of the company.

A strategic core element in this effort to improve is to enter into long-term, interdependent collaboration with strategically important suppliers.

“Platform Alliance”

The intent of the entered framework agreements is that Aker BP in the company’s field development projects develops and executes work by using a more integrated project delivery model; a “Platform Alliance” for each project.

“Our goal is to work more efficiently alongside the suppliers, as well as to minimise the total time it takes to deliver the final product. We want to work as one integrated team and with the same incentives to reduce costs and to remove non-value added activities”, says Senior Vice President (SVP) Projects, Olav Henriksen.

The entered framework agreements and the planned collaborative model is a natural extension of the principles and experiences that Aker BP already has developed and acquired through the “Subsea Alliance”, which was established with Aker Solutions and Subsea 7 in 3Q 2016.

The framework agreements are independent and can be used separately or as part of the future “Platform Alliance”. Use of the framework agreements within or outside the Alliance model presumes agreement among partners in the involved licenses.

Framework agreements

The following framework agreements have been entered into:

  • Engineering & Procurement (EP): This framework agreement has been awarded to Aker Solutions and comprises engineering services and procurement from early studies to first oil.
  • Construction & Hook-up (CH): This framework agreement has been awarded to Kvaerner and comprises construction of steel jackets and topsides, including offshore hook-up.
  • Electro, Instrument, Control & Telecom (EICT): Separate framework agreements have been awarded to both Siemens and ABB. The agreements consist of design, supply and installation of electrical, instrument, control and telecom systems, from the preliminary phase to first oil.

Aker BP has also entered into a separate framework agreement with Heerema Marine Contractors for transport and installation of facilities offshore (Transport & Installation – T&I), including Call-off for transportation and installation on Valhall West Flank. This framework agreement is not included in the planned Alliance model.

The framework agreements followed completion of a competitive process, where qualified suppliers were invited to tender for one or more of the services.

All framework agreements have durations of six years with an option for four additional years.

Valhall Flank West

In the Valhall licence, Aker BP and partner Hess Norge have already agreed to use an Alliance model to develop the Valhall Flank West.

The plan is to develop a normally unmanned installation (NUI). The goal is to submit the Plan for Development and Operation (PDO) in the second half of 2017.