Norway’s Equinor awarded a contract to Subsea 7 on behalf of the Johan Sverdrup licence for subsea pipelines and associated marine operations in the second project phase.
This will increase the share of contracts awarded to Norwegian suppliers in phase 2 of the Johan Sverdrup project to 85 per cent.
“Demonstrating competitiveness and a strong ability to improve during the past years, Norwegian suppliers have secured as much as 70 per cent of the contracts in the first phase of the Johan Sverdrup development. Today’s contract award increases the Norwegian share in phase 2 to 85 per cent,” said Peggy Krantz-Underland, Equinor’s chief procurement officer.
The first phase of the Johan Sverdrup development is nearly 90 per cent completed, with expected production start in November. In phase 1, Subsea 7 was responsible for delivery and installation of several subsea components and tie-in of pipelines at the field.
In the second project phase Subsea 7 is awarded the contract for delivery and installation of around 100 kilometres of infield pipelines and 25 spools, installation of umbilical and marine operations associated with the subsea scope.
“Subsea 7 is awarded the last major subsea contract for Johan Sverdrup phase 2. Based on good experiences and learning from phase one, the award will ensure continuity and a coherent development of the entire Johan Sverdrup field. This will give us a good foundation for enhancing our collaboration on safety, efficiency and further improvements in the execution phase and afterwards in the operating phase,” said Trond Bokn, project director for the Johan Sverdrup development.
Subsea 7 describes the value of the contract as “substantial”, defined to be in the range of US$150-300 million.
Johan Sverdrup is regarded as Norway’s biggest industrial project in modern history. The Agenda Kaupang consulting company estimates that the Johan Sverdrup project may provide more than 150,000 man-years in Norway in the development period 2015-2025.
Phase 2 of the Johan Sverdrup development was approved by Norwegian authorities in May 2019. Start-up of phase 2 is scheduled for the fourth quarter of 2022.
The Johan Sverdrup licensees are Equinor (operator), Lundin Norway, Petoro, Aker BP and Total.