Norwegian engineering and construction services company Kvaerner has signed a framework agreement with Statoil for upgrading of the Njord A semi-submersible platform located in the Norwegian Sea.
At the same time, Statoil has made the first call-off from the framework agreement with an estimated value of NOK 120 million ($14.4M).
Statoil is the operator of the Njord field which has been developed with a floating steel platform, Njord A. The platform has an integrated deck with drilling and processing facilities, as well as living quarters. It is located around 130 km northwest of Kristiansund and 30 km west of the Draugen field.
Statoil’s partner in the field announced in February that production from the Njord and Hyme fields would be suspended at the end of May 2016 due to upgrade work planned.
“We are proud to have been awarded this project in tough competition. We believe it is a result of our extensive efforts to increase competitiveness, and it demonstrates a trust in our ability to deliver complex projects on time,” says Jan Arve Haugan, President & CEO of Kvaerner.
Due to insufficient structural integrity for future operations and drilling, the Njord A Platform will be towed to shore in 2016. In addition, the yard-stay period will be used for a general upgrade of the platform.
The project framework agreement (PFA) signed by Statoil and Kvaerner is based on a project execution plan, where Statoil at key milestones has the option to call-off the execution of further phases, Kvaerner explained. The options for further scope of work include yard stay at Kvaerner Stord prior to final investment decision, execution of EPC phase for platform upgrade and various modifications and services to Statoil.
The first call-off from the frame agreement was made on Monday for the front-end engineering and design of the project (FEED). Engineering will be executed by Aker Solutions MMO as a subcontractor in an integrated team with Kvaerner.
Per Harald Kongelf, head of Aker Solutions’ Norwegian operations, said: “We look forward to working with Kværner to find the most robust and cost-effective solutions for Statoil on this project, which draws on our experience in complex modifications.”
Aker Solutions’ MMO unit in Bergen will execute the FEED work with support from the company’s engineering business in Oslo, working as an integrated team with Kværner.
The company said that the work would start immediately and at its peak involve 120 employees of Aker Solutions.
Njord A was originally delivered by today’s Kvaerner at Stord in 1997.
Last week, Kvaerner was implicated in a major international oil industry corruption scandal including Monaco-based company Unaoil. Kvaerner denied any wrongdoing.