Statoil has entered a frame agreement with Kvaerner for the delivery of jackets for the North Sea in the period up to 2020.
The companies have also agreed a letter of intent for a first project under the frame agreement - two steel jackets for the giant, four-platform Johan Sverdrup development, offshore Norway.
Image: The Johan Sverdrup concept
The agreement comprises the riser platform and drilling platform – the two largest and most demanding steel jackets at the field centre. The jacket for the riser platform is due for delivery in summer 2017 and the drilling platform jacket in spring 2018.
The letter of intent for the first two platforms on the Johan Sverdrup field is contingent on an investment decision for Sverdrup being reached in February 2015.
Kvaerner is already involved in the development of Johan Sverdrup through its role as subcontractor on the field centre pre-project. Aker Solutions is responsible for the pre-project and, as part of this, is using Kvaerner for the design of the field centre’s jacket.
The contracts for the steel jacket for the accommodation quarters and the processing plant are expected to be awarded in the middle of 2015. Kvaerner is one of several potential suppliers.
Statoil says the frame agreement with Kvaerner ensures greater consistency and secures Statoil the access to competitive expertise and capacity that will be crucial to forthcoming developments.
“The Sverdrup development is historical and the biggest on the Norwegian continental shelf since the 1980s. It is an industrial development with a 50-year perspective. This letter of intent signifies a fresh step forward in planning the first phase of Johan Sverdrup,” says Statoil CEO Helge Lund.
“It is highly pleasing that Kvaerner has managed to come up with a competitive and forward-looking delivery model. By so doing, Kvaerner has demonstrated that cost-reduction measures and increased efficiency do bear fruit. This is inspiring for us in Statoil. Safe and cost-effective resource utilisation and long-term value creation are our most important tasks,” added Lund.
The Johan Sverdrup oil field is in production licenses 265, 501 and 502, in the Utsira High in the North Sea, 140km west of Stavanger.
The water depth is 110m, and the reservoir is 1900m deep. The plan for development and operation (PDO) is expected to be dealt with by the Storting in the spring session of 2015. Production start-up is scheduled for late 2019, and the field has a production horizon of 50 years.
It was decided early in 2013, as part of the design basis, that the field would be developed in phases. The first phase involves the establishment of a field centre consisting of four platforms.
It is recommended that the oil is piped from the Mongstad terminal in Hordaland and that the gas is pied to Statpipe and then on to the Kårstø processing plant in North Rogaland.
The field will be operated using land-based power.
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