Swedish engineering giant ABB have struck a deal with Statoil over its Johan Castberg development in the Barents Sea.
The agreement was reached as part of a wider cost cutting programme aimed at reducing overall capital expenditure in the oil field.
ABB has signed the project’s first specific agreement to provide safety and automation systems for Statoil.
Per Erik Holsten, managing director for ABB’s oil, gas and chemical business, said effective control measures can improve safety while also reducing overheads.
He said: “For offshore fields like Johan Castberg located in the Barents Sea, having state-of-the-art safety and automation systems is absolutely critical.
“Possible future condition-based and predictive maintenance, and remote monitoring and operations, may further reduce exposing humans and nature to risks. At the same time such services may decrease the operational expenditures and increase productivity.”
The front end engineering and design (FEED) programme is scheduled to run until Q4 2017, when the final investment decision will be taken.
Johan Castberg features proven resources of 450 – 650 million barrels of oil. It is estimated to produce oil for more than 30 years at a value of approximately $35billion.
Every onshore and offshore oil and gas facility above the Arctic Circle in Norway features safety and automation systems provided by ABB.