FMC Technologies to supply subsea equipment for Johan Sverdrup

Contract signing ceremony
Contract signing ceremony

On behalf of the Johan Sverdrup partnership, Statoil has awarded an EPC contract for subsea equipment for the Johan Sverdrup project, offshore Norway, to FMC Kongsberg Subsea AS. The contract involves establishment of a new and cost efficient standard for subsea equipment.

According to Statoil’s press release issued Friday, the contract has an estimated value of NOK 1.3 billion ($160.7 million), and includes deliveries of 13 Subsea trees and well heads, in addition to three subsea templates and control systems.

In addition, contracts have been awarded for aftermarket services and additional components related to the Johan Sverdrup field.

The contracts include options for further deliveries to cover any future needs on the Johan Sverdrup field, and other possible field developments on NCS.

Kjetel Digre, senior vice president for the Johan Sverdrup development project, says: “The subsea equipment which will be delivered from FMC Technologies makes up an important part of the Johan Sverdrup development. The subsea equipment enables reinjection of sea water and produced water into the Johan Sverdrup reservoir when we have started production. In this way, we will achieve maximum recovery and value creation from the Johan Sverdrup resources. At the same time, this is a favourable environmental solution, as we will minimize discharges to sea from the field.”

In the first phase of the Johan Sverdrup development, three standard templates will be installed north and south of the field centre, on water depths of 110 to 120 meters. The subsea templates will be controlled and supplied with produced water or seawater through pipelines from the field centre.

“FMC Technologies has been awarded these contracts in a context of competition and an obvious need for considerable and sustained cost improvements. We have clear expectations of FMC Technologies’ ability to keep up the good work of reducing costs and optimizing processes both in project execution and in the aftermarket,” says senior vice president for TPD Projects, Torger Rød.

The award is based on a new standard vertical Subsea tree, which has been developed in cooperation with the supplier market and DNV. Statoil says that this new standard will help increase cost efficiency for future subsea developments.

Master Service Agreement

Statoil and FMC Technologies have in parallel negotiated a contractual framework which will form the basis for future tender processes for subsea projects, operational services and studies.

The investment costs in the first phase of the Johan Sverdrup development are estimated at around NOK 117 billion (2015 value), with expected recoverable resources in the range of 1.4 – 2.4 billion barrels of oil equivalent.

The first phase of the Johan Sverdrup field development will consist of four installations, including a utility and living quarters platform, a processing platform, a drilling platform and a riser platform, as well as three subsea water injection templates. The platforms will be interlinked by gangways.

The ambition is a recovery rate of 70% for Johan Sverdrup.

Johan Sverdrup field partners: Statoil 40.0267% (operator), Lundin Norway 22.6%, Petoro 17.36%, Det norske oljeselskap 11.5733% and Maersk Oil 8.44%.​​​

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