London-based engineering and project management company AMEC has been awarded the front-end engineering and design contract for development of the Cygnus field in the southern North Sea.
The £50 million contract, which was awarded by GDF SUEZ E&P UK, is a front-end engineering & design (FEED) contract, which includes the option to proceed into detailed design and procurement services.
AMEC will start work immediately on the project, with completion scheduled for the first half of 2012. The contract is expected to create around 150 jobs at its peak.
AMEC supplies consultancy, engineering and project management services to customers in the oil and gas, minerals and metals, clean energy, environment and infrastructure markets.
The contract is the start of several major projects currently being tendered by GDF SUEZ E&P UK to support the Cygnus field development.
Cygnus is one of the most significant undeveloped gas fields in the UK Continental Shelf. Analysis of the results from the discovery well and six appraisal wells, together with 3-D seismic evaluations, has led to a preliminary ultimate recovery estimate of at least 15 billion cubic metres of natural gas, potentially up to 28 billion cubic metres. The development plan is for a four platform complex with two drilling centres and up to 10 wells.
Commenting on the contract win, John Pearson, managing director of AMEC’s Europe and West Africa business, said: “We are delighted to be working with GDF SUEZ E&P on their strategically important Cygnus field. Nearly four decades experience and proven delivery in the North Sea will help to deliver Cygnus, which is not only a new field development, but GDF SUEZ E&P’s first major operated North Sea field.”
He concluded: “The combination of the quality of our people and our extensive service offering has been key in winning this award.”
Jean-Claude Perdigues, managing director of GDF SUEZ E&P UK, added: "The FEED contract award represents a major milestone for the Cygnus development and underlines our strong commitment to the UK Continental Shelf. I look forward to working closely with AMEC as we progress the field development project towards final investment decision in 2012."
With annual revenues of around £3 billion, AMEC designs, delivers and maintains strategic and complex assets, employing more than 27,000 people in around 40 countries worldwide.
GDF SUEZ E&P UK employs around 120 staff at its London office and operations centre in Aberdeen. In the UK, the company holds 46 exploration licences (16 as an operator) and 16 producing fields located in the UK North Sea.
