Statoil hands out contracts worth over £1billion for Johan Sverdrup phase 2

Johan Sverdrup
Johan Sverdrup

Statoil has signed letters of intent with Aibel as well as an Aker Solutions-Kvaerner joint venture for work on phase two of its massive Johan Sverdrup development.

The work is worth over NOK 11billion (£999million).

Aibel, a Norwegian service company, is being given work worth NOK 8 billion (£727million), for construction of the processing platform topsid for phase 2.

It will extend production capacity on the field from 440,000 to 660,000 barrels of oil per day after start-up in 2022.

The Aker Solutions-Kvaerner joint venture is being given an NOK 3.4billion (£309million) for construction of a utility module for the riser platform, as well as field centre modifications, and installation and hook-up activities.

The work, which will involve around 2,000 employees at its peak, will start in the second quarter of this year, and will be completed in 2022.

Kvaerner says the module will be constructed at its specialised facilities at Stord, Norway.

Phase 1 of Johan Sverdrip is already underway, with production set to start in late 2019.

The full Johan Sverdrup field is estimated to have up to 3.1billion barrels of oil equivalent.

It is one of the largest discoveries on the Norwegian shelf and lies around 86 miles west of Stavanger.

Margareth Øvrum, executive vice president for Technology, projects and drilling in Statoil, said: “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.”

Elly Bjerknes, executive vice president and responsible for topside projects in Kvaerner, said: “We are looking forward to working with Aker Solutions in a focused joint venture with a common project management team. We will execute the new project based on all the improvements we have made in recent years for increased productivity and cost reductions.”