Aibel to build deck for Johan Sverdrup platform

Today Statoil, on behalf of the Johan Sverdrup partnership, will sign a contract with Aibel for the construction of the deck for the drilling platform on the field. The contract is worth in excess of NOK 8 billion (USD 1.05 billion).

The contract includes engineering work, procurement and construction (EPC) of the drilling platform deck. Engineering design will be undertaken at Aibel’s office in Asker outside Oslo.

The platform deck will be built at the Aibel’s yard in Thailand and Haugesund, and at Nymo’s yard in Grimstad.

“The fact that Aibel has won this prestigious contract proves that we can assert ourselves in keen competition, that we have a sound implementation model and the necessary expertise and experience. We have tailored the organisation to undertake efficient new structure projects, are highly motivated, and are looking forward to get started on this extensive and important industrial project in cooperation with Statoil,” says CEO and President in Aibel, Jan Skogseth.

Assembly and mechanical completion of the deck will be carried out at the Aibel’s yard in Haugesund with delivery in 2018. Installation on the field is planned for the same year.

“The Johan Sverdrup field is one of the biggest discoveries on the Norwegian continental shelf that will, for its entire lifetime, be a pillar for Norwegian industry and value creation for the Norwegian society. On behalf of the partnership we are looking forward to a close cooperation with Aibel in order to ensure a safe and efficient delivery of this project,” says Statoil’s Arne Sigve Nylund, executive vice president of Development & Production Norway.

“Targeted efforts have been made to reduce cost and ensure a cost-efficient delivery and execution. We are therefore pleased to see that Norwegian suppliers have regained their competitiveness. The drilling platform is one of four platforms in the planned field centre and it is a complex and challenging project in itself. In order to succeed we are dependent on competent suppliers at all stages, and Aibel has been awarded this contract in a very competitive market,” says Margareth Øvrum, executive vice president for Technology, Projects & Drilling Statoil.

Investment costs for full field development are estimated to be in the region of NOK 170-220 billion (2015 value) with recoverable resources of between 1.7 and 3.0 billion barrels oil equivalent.

Johan Sverdrup’s first phase development involves four installations including an accommodation a drilling, a riser and process platform, as well as three seabed templates for water injection. The platforms will be connected by walkways.

The ambition is a recovery of 70%. At plateau production the field will account for roughly 40% of the total oil production on the Norwegian continental shelf. Start-up is planned for late 2019.

The Johan Sverdrup partnership consists of Statoil, Lundin Norway, Petoro, Det norske oljeselskap and Maersk Oil. The partnership has recommended Statoil as operator for all the field’s phases.

The award of this contract is subject to approval of the Plan for Development and Operation in 2015 by the Norwegian Parliament.

 

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