Flexlife Receives Apache North Sea Contract Extension

Leading subsea integrity and project management specialist Flexlife has been awarded a contract extension by Apache North Sea worth £5million per annum.

Flexlife was originally awarded a three-year deal and has now secured a one-year extension, to project manage work with a CAPEX value in excess of £130million. The contract also covers the on-going Integrity Management of all the subsea infrastructure and pipeline on Forties and Beryl.

The scope of the work has grown significantly over the life of the contract. The original deal covered operational pipeline support on Apache North Sea’s assets and rapidly expanded to cover project management of major new subsea developments, ensuring compliance with UKCS legislation.

The value of the contract is worth £5million per annum to Flexlife. A team of 30 Flexlife subsea staff based in Aberdeen and Newcastle are dedicated to the Apache North Sea work at present and this could rise over the next year.

Flexlife CEO Ciaran O’Donnell said: “Building on what has already been a successful three years ensuring subsea integrity and project management for Apache, Flexlife is delighted to have secured an additional one year contract extension. The company has worked closely with Apache to ensure we meet their ambitious objectives for the successful development of their subsea assets”.

“Having implemented what is now proving to be a highly robust integrity management programme, our aim is to continue to in-still confidence in the operator that Flexlife is fully aware of the condition of their subsea infrastructure and has adequate control measures in place. This programme demonstrates that Apache are doing their utmost to ensure the safety of their subsea assets as well as operating them in the most efficient manner.

“Delivering on-going results on such a major piece of work for such a dynamic client has helped establish our reputation for supplying integrity subsea by giving our client assurance we are aware of the condition of its subsea operations. In addition to this, we are continuing to offer innovative flexible pipe technology and a ground-breaking integrity management service that comes up with major risk and cost-savings for operators.’’

Mark Richardson Projects Group Manager at Apache said: “The subsea project management support provided by Flexlife to Apache has been extremely successful. As a result of Flexlife being completely aligned with our objectives, their work has increased as our subsea development opportunities have expanded.’’

Flexlife recently completed the project management of the Bacchus subsea field development for Apache North Sea, with a project delivery value of nearly £100million. It is now producing in excess of 10,000 bpd.

In the next major phase of work, Flexlife has managed the fabrication of two 200tonne SSIVs (subsea isolation valves) at Invergordon. The company is currently out to tender for CSV (construction support vessel) and DSV (diving support vessel) support for installation scheduled for the middle of 2013, with main tie in work scheduled during the routine field shut down in Q3.

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Press Release, February 20, 2013