Bonus for North Sea winners

Eight offshore contractors stand to make millions of pounds in bonuses from bringing a seven-field North Sea development on stream two months early. The eight were in an alliance with BP, the operator, to build and install the production facilities for the Etap project a network of three platforms, subsea production units and pipelines over […]

Eight offshore contractors stand to make millions of pounds in bonuses from bringing a seven-field North Sea development on stream two months early.

The eight were in an alliance with BP, the operator, to build and install the production facilities for the Etap project a network of three platforms, subsea production units and pipelines over an area of about 1,000m2 in the central North Sea.

‘We do not believe a multi-field development as complex as Etap has ever been tried before,’ said Chris Rhodes, BP’s business unit leader for the central North Sea.

BP and its partners in the development sanctioned a budget of £900m for the facilities. Under the terms of the alliance, the operator will split any savings achieved against on this figure 50-50 with the contractors.

A BP spokesman said the figures had not yet been worked out, but that individual shares would be allocated according to influence exerted on the outcome of the project. A similar alliance on BP’s Andrew project, which came on stream in 1996 at a cost of £290m, saw a bonus of about £80m split.

The contractors in the Etap alliance were Amec, Barmac, Brown & Root, Consafe, European Marine Contractors/Coflexip Stena, Heerema and Kvaerner.