Norway’s Statoil said it signed preliminary agreements worth NOK 11 billion (US$1.41 billion) for the offshore rig Johan Sverdrup phase 2 construction works with Aibel and a joint-venture of Aker Solutions and Kværner.
A NOK 8 billion contract to be awarded later this year to Aibel includes engineering, procurement and construction (EPC) of the topside for the second Johan Sverdrup processing platform (P2) which will extend production capacity on the field from 440,000 to 660,000 barrels of oil per day after production start-up of the project in 2022, Statoil said in a statement.
Also to be awarded later this, the contract with Aker Solutions-Kværner joint venture includes engineering, procurement and construction of a utility module for the riser platform, field centre modifications, and installation and hook-up activities related to the phase 2 development. Contract value is estimated at NOK 3.4 billion.
Phase 1 of the Johan Sverdrup development is well underway with planned start-up in late 2019, Statoil said.
“Signing these two agreements involving three of our main suppliers from phase 1 expresses our desire to build on the experiences, collaboration and skill-sets developed into the second phase of the project,” said said Kjetel Digre, senior vice president for Johan Sverdrup in Statoil. “This should give us a good starting point to deliver Johan Sverdrup phase 2 safely, with quality and on budget.”
An area-wide solution by 2022 for power from shore to the Utsira High area, is an integrated part of the phase 2 development where another power converter will be installed on the new processing platform, Statoil said.
Considerable socioeconomic benefits
To date, the Johan Sverdrup development has led to contracts worth more than NOK 60 billion. Of this, more than 70 per cent have been awarded to suppliers in Norway.
The two phase 2 contracts will lead to increased activity at several yards along the Norwegian coast – particularly in Haugesund, Egersund and Stord. Engineering activity will take place in Asker (Aibel) and Stavanger (Aker Solutions). At its peak, the Johan Sverdrup phase 2 development will directly employ more than 3000 people in Norway.
“Johan Sverdrup will create significant value for its owners and society for more than 50 years. And I am pleased to see that Norwegian suppliers are continuing to be competitive in an international market, enabling them to participate in the next stage of the Johan Sverdrup project,” said Margareth Øvrum, executive vice president for Technology, projects and drilling in Statoil.
The contracts are subject to Norwegian government approval of the plan for development and operation for Johan Sverdrup phase 2 due to be submitted in the second half of 2018.