Statoil, on behalf of the Johan Sverdrup partnership, signed a letter of intent with Aibel for the construction of the processing platform topside for phase 2 of the project. A letter of intent for field center modifications is also issued to a joint venture of Aker Solutions and Kværner. Total value is estimated at more than NOK 11 billion ($1.4 billion).
Phase 1 of the Johan Sverdrup development is well underway with planned startup in late 2019. To promote synergies, continuity and a holistic development of the entire field the Johan Sverdrup partnership is issuing letters of intent for the development of phase 2 of the project. The contracts will be awarded later this year. Production start for phase 2 is planned in 2022.
"Good and close collaboration with our suppliers has been an important factor behind the improvements that we have seen so far in phase 1 of the Johan Sverdrup development. Signing these two agreements involving three of our main suppliers from phase 1 expresses our desire to build on the experiences, collaboration and skill-sets developed into the second phase of the project. This should give us a good starting point to deliver Johan Sverdrup phase 2 safely, with quality and on budget," said Kjetel Digre, senior vice president for Johan Sverdrup in Statoil.
The contract to be awarded to Aibel includes engineering, procurement and construction (EPC) of the topside for the second Johan Sverdrup processing platform (P2) which will extend production capacity on the field from 440,000 to 660,000 barrels of oil per day after startup in 2022. The value of the contract is approximately NOK 8 billion ($1 billion).
The contract to be awarded to the Aker Solutions-Kværner joint venture includes engineering, procurement and construction of a utility module for the riser platform, field center modifications, and installation and hook-up activities related to the phase 2 development. Contract value is estimated at NOK 3.4 billion ($434.5 million).
An area-wide solution by 2022 for power from shore to the Utsira High area, is an integrated part of the phase 2 development where another power converter will be installed on the new processing platform.
To date the Johan Sverdrup development has led to contracts worth more than NOK 60 billion ($7.7 billion). Of this, more than 70 percent have been awarded to suppliers in Norway.
The two phase 2 contracts will lead to increased activity at several yards along the Norwegian coast – particularly in Haugesund, Egersund and Stord. Engineering activity will take place in Asker (Aibel) and Stavanger (Aker Solutions). At its peak, the Johan Sverdrup phase 2 development will directly employ more than 3,000 people in Norway.
"Johan Sverdrup will create significant value for its owners and society for more than 50 years. And I am pleased to see that Norwegian suppliers are continuing to be competitive in an international market, enabling them to participate in the next stage of the Johan Sverdrup project," said Margareth Øvrum, executive vice president for Technology, projects and drilling in Statoil.
The contracts are subject to Norwegian government approval of the plan for development and operation for Johan Sverdrup phase 2 due to be submitted in the second half of 2018.