Energy giant Statoil has awarded Norwegian engineering firm Kvaerner a 3.8billion NOK contract for construction and installation of the floating production, storage and offloading (FPSO) vessel to be used in the Johan Castberg field.
The construction work is scheduled to last until late 2021 and will take place on several yards along the Norwegian coast, including Sandnessjøen, Verdal, Stord and Egersund.
First oil from the field in the Barents Sea, which will generate billions of Krone for the Norwegian economy, is expected in the first half of 2022.
The field is expected to be producing for more than 30 years.
Torger Rød, Statoil’s senior vice president for project management control, said: “This is one of the large pieces of the Johan Castberg puzzle, and is a key component of the FPSO.
“The contract includes building a total of ten modules, flare boom and central pipe rack. The international competition for the contract has been tough, and we look forward to working closely with Kværner in the years to come.
“Norwegian suppliers have again demonstrated their competitiveness.”
Capital expenditures for the Johan Castberg project are estimated at NOK 49 billion.
Operator Statoil leads a partnership on the Johan Castberg, owning 50%, along with with Eni (30%) and Petoro (20%).
Pål Eitrheim, Statoil’s chief procurement officer, said: “The Johan Castberg development will generate substantial spinoffs for Norwegian supply industry in the years ahead.
“The field is also essential to the further development of industry in Northern Norway, and we are pleased that this contract will help increase activities in the north.”