Operator BP has handed Vetco Gray the NOK1.59 billion ($265 million) job of engineering, building and then maintaining the subsea production equipment of the Norwegian Sea’s Skarv development.

A first, engineering phase of the contract runs four years and is worth some $250 million.

The contract scope encompasses the detailed design, project management and supply of subsea production equipment, plus installation and commissioning.

Most of the work will go to workshops in Haugesund and Billingstad in Norway, Aberdeen and Nailsea in the United Kingdom. A second, five-year “operations” contract stage is worth $15 million to its Stavanger managers.

Skarv was discovered 10 years ago. A plan to develop the field was submitted to the Norwegian Parliament for approval at the end of June. Skarv and Idun lie between the Norne field (35 kilometres due north) and Heidrun (45 km south) in water up to 400 metres deep.