Statoil has continued a contract award spree on its giant Norwegian North Sea Johan Sverdrup project, awarding Aker Solutions a US$590 million detailed engineering contract.
Johan Sverdrup, which sits in on the Utsira High, 140km west of Stavanger, is largest offshore discovery in Norway in 30 years, with an estimated 1.8-2.9 billion boe, and will become one of the biggest current industrial projects in Norway in coming years. Production is slated to start in late 2019 and is predicted to last for about half a century.
Image: The Johan Sverdrup concept. Image from partner Lundin.
"Johan Sverdrup will define the oil industry in Norway and play a large part in our company's growth for years to come," said Luis Araujo, Aker Solutions' chief executive officer. "We are sparing no effort and working in close cooperation with the field's partners to ensure the development is second to none."
Yesterday, Statoil awarded Kvaerner a $261 million contract for the riser platform jacket on the field. Today’s contract with Aker Solutions includes engineering and procurement management, on the riser and processing platform topsides for the Johan Sverdrup field phase one, in addition to hook-up work and gangways for the entire field, until the 2019 scheduled start date.
Aker Solutions has already been responsible for the front-end engineering of all four platforms that will constitute the field center.
The field’s first phase of development consists of four installations, comprising an accommodation platform, a drilling platform, a riser platform and a processing platform. At plateau, production from the field will account for 25% of the combined production on the Norwegian Continental Shelf.
Image: Johan Sverdrup sits on the Utsira High. It was originally two discoveries - Aldous/Avaldsnes.
An early estimate by Statoil for full development had been $22.3-28.9 billion with daily production put at 550,000-650,000 bbl/d. But, Statoil has been concentrating on cost reduction.
“Targeted efforts have been made to cut costs and improve the efficiency of the deliveries,” says Margareth Øvrum, Statoil’s executive vice president for Technology, Projects and Drilling.
"Finding cost-efficient and sustainable solutions is absolutely necessary and we will keep working with the license partners to do this through a systematic and ambitious improvement program," said Aker Solutions' Head of Engineering Valborg Lundegaard.
The contract award is conditional on an investment decision for the Johan Sverdrup development in February 2015, and is subject to the approval of the Plan for Development and Operation for the field in Parliament in 2015.
Oil from the field will be piped to the Mongstad terminal in Hordaland. The gas wil be transported to Statpipe and onto the Kårstø processing plant in North Rogaland. Daily production during phase 1 estimated at 315,000–380,000 b/d. Peak production for the field is estimated to reach 550,000-650,000 b/d and is expected to come on stream by the end of 2019.
Johan Sverdrup covers production licenses 265, 501, 501B and 5022. Statoil is the operator of the planning phase. Partners include Lundin Norway, Maersk Oil, Petoro, Det norske oljeselskap.
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