After some tough international competition, Statoil chose the Kvaerner/KBR joint venture to take on the US$849 million (NOK 6.7 billion) contract for the complete delivery of the platform topside to the Johan Sverdrup field development in the North Sea.
 |
|
Johan Sverdrup living quarters illustration. From Kvaerner. |
The Kvaerner- KBR partnership will deliver the deck for the utility and living quarter (ULQ) platform. The ULQ-platform is one of four platforms for the Johan Sverdrup Phase One development.
The JV will execute the engineering, procurement and construction (EPC) for the ULQ topside as one complete delivery. The agreement also includes an option for commissioning assistance and offshore hook-up for the platform, Kvaerner said.
Detailed engineering will start immediately, while fabrication is expected to start spring 2016. The platform topside is scheduled to be delivered in the first quarter of 2019.
The Johan Sverdrup field is one of the five biggest oil fields on the Norwegian Continental Shelf with estimated resources of 1.7-3 billion boe. It is located on the Utsira Height, 155km of Stavanger at 110-120m water depth. Production start-up is scheduled for the end of 2019.
"The market has shown a strong interest in this contract, and Kvaerner and KBR have won the contract in tough international competition. So far the Norwegian supplier industry has won the main Johan Sverdrup contracts. It is good to see that Statoil and the suppliers jointly are about to break the cost curve to ensure competitive force in a tough time for the whole industry," Margareth Øvrum, Statoil executive VP for technology, projects and drilling said.
“Last year, the turn-around of Kvaerner's business for steel substructures for platforms resulted in a letter of intent for two jacket deliveries to Johan Sverdrup. Today's agreement shows that also Kvaerner's business for platform topsides has established a new competitive cost level,” Jan Arve Haugan, Kvaerner president and CEO said. “We will continue the drive to improve our costs, productivity and competitiveness even further, in close dialogue with Statoil and other clients."
Kvaerner owns 51% stake in the JV, with KBR holding the remaining 49%.
Recent Johan Sverdrup awards
Kvaerner and KBR join a long list of companies that in this year alone have been awarded a piece of the giant Johan Sverdrup.
Just for Phase One of the project, at the estimated $14 billion (NOK 117 billion) investment includes four-bridge linked platforms, with power from shore, and three subsea water injection templates.
The full field development cost is estimated at $14.8-$27.8 billion (NOK 170-220 billion) and is expected to unlock up to 3 billion boe.
In January, Kvaerner Verdal was awarded a $261 million to deliver the riser platform jacket. The contract follows a letter of intent, which Statoil entered into with Kværner in 2014, for two of the four jackets for Johan Sverdrup.
Other contracts include:
This month, Lloyd’s Register Consulting secured a framework agreement in risk assessment and safety studies to provide risk management support to companies involved in developing Johan Sverdrup. The contract is an extension of the company’s collaboration with Aker from its initial front-end engineering and design (FEED) phase project on Johan Sverdrup.
In May, Kongsberg Maritime was awarded a call-off order for delivery of the safety and automation system (SAS), life cycle simulator and SAS information management system for the four platforms.
In March: IKM Ocean Design won a two-year SURF detail engineering and services 2015-20 contract for the completion of detailed design, follow-on and supervision for all pipelines and cables in the field. The contract comes with an option of three years includes future phases of the field; Kvaerner awarded Drydocks World to fabricate components for the riser platform jacket; ABB won a $133.5 million contract for land-based power supply to Phase One; 2H Offshore was awarded a contract for tieback conductor, platform conductor and surface riser engineering analysis.
In February: Aibel won a $1 billion contract for the engineering, procurement and construction for the deck of the drilling platform on the Johan Sverdrup field; Odfjell Drilling was awarded a $14 million (NOK 110 million) EPC contact on the drilling platform topside; and Allseas was awarded the installation of three platforms in single lifts using the Pioneering Spirit mega vessel.
Also in January, Aker Solutions landed a $590 million engineering contract.
Subscribe
