Neptune Energy said Tuesday it has entered into a global alliance agreement with TechnipFMC for delivering subsea projects.

The agreement will run for an initial period of five years with options to extend, and will cover the full project lifecycle from early concept work, through engineering, procurement, delivery of subsea production systems and installation of subsea equipment and infrastructure, and continues into life of field support.

Mark Richardson, Vice-President Projects in Neptune Energy said, “The global alliance agreement establishes a long-term relationship, based on common goals, shared values and mutual trust, supported by a commercial model where collective positive performance is rewarded.”

The first developments to be executed under this contract model are the Neptune operated Duva and Gjøa P1 projects in The Norwegian sector of the North Sea at a water depth of 375 meters. Both fields will be developed as fast-track subsea tiebacks to the Neptune operated Gjøa facilities. TechnipFMC has been awarded a contract, worth between $250 million and $500 million, covering the delivery and installation of subsea equipment from the wellheads to the riser hang-off at Gjøa. This includes subsea templates, xmas trees, manifolds, production and gas lift pipelines, umbilicals, subsea structures and control systems) plus installation activities.

The engineering and fabrication works have commenced and the first template will be installed in the third quarter of 2019 on the Duva field. The majority of the installation scope will be in 2020 with first oil targeted for the fourth quarter of 2020.

The Duva field is located 6 kilometers northeast of the Gjøa field (12 kilometers from the Gjøa platform). The shortest distance to shore is 35 kilometers. The discovery was made in production license 636 in August 2016 by drilling well 36 / 7-4. Neptune is operator of Duva with 30% interets, and its partners are Idemitsu Petroleum (30%), Pandion Energy (20%) and Wellesley Petroleum (20%).

The Gjøa field was discovered in 1989, and a plan for development and operation (PDO) was delivered and approved by the Norwegian authorities in 2007. The field is developed with five subsea templates tied to the Gjøa semisubmersible for processing and export. Production started in 2010. Oil is exported by pipeline to Mongstad and gas by pipeline to St. Fergus in the UK. The Gjøa P1 segment is located in the northern part of the Gjøa field. Neptune operates the license with a 30% stake, and its partners are Petoro (30%), Wintershall (20%) OKEA (12%) and DEA (8%).