Statoil has signed a letter of intent with a consortium consisting of Technip Offshore Norge AS and Subsea 7 Norway NUF for reeled pipe installation services on the Norwegian continental shelf. The letter of intent relates to a 2yr framework contract for reeled pipe installation services. The value of the contract is estimated at NOK 1.6 billion, provided that the project commitments as per contract award are sanctioned. Work at a value of NOK 300 million has so far been approved on the Åsgard field in the Norwegian Sea. The main vessels to be used under the contract are Apache and Skandi Navica. The contract covers project management, engineering, fabrication and installation of reeled pipe applications for 2007 and 2008. The consortium is based on a 50/50 split between Subsea 7 and Technip Offshore Norge.