TechnipFMC Wins Johan Sverdrup 2 Contract

TechnipFMC said on Wednesday it has secured a contract from Norwegian operator Equinor for the delivery and installation of the subsea production system the at Johan Sverdrup Phase 2 development offshore Norway.

The award covers the delivery and installation of the subsea production system including integrated template structures, manifolds, tie-in and controls equipment. Equinor said the production system consists of five templates and a total of 18 X-mas trees with associated components.

TechnipFMC did not specify an exact dollar amount, but said the contract is worth between $75 million and $250 million.

The contracts are subject to approval of the plan for development and operation (PDO) for Johan Sverdrup phase 2, which was submitted to the authorities in August 2018, Equinor said.

“We have now determined the subsea solution for both phase 1 and 2 of the field development, and TechnipFMC has been given the responsibility for both jobs,” said Trond Bokn, senior vice president for the Johan Sverdrup development. “This gives us a good starting point for accelerating the collaboration on safety, efficiency improvement, simplification and technology development. Close collaboration in the execution phase lays the foundation for achieving good solutions and further simplifications in the operating phase.”

Arnaud Piéton, President Subsea at TechnipFMC, said, “We have collaborated closely with Equinor establishing a Strategic Collaboration Agreement in 2018. This joint engagement is leading to further value creation for both of us and for Equinor’s Johan Sverdrup Phase 2 Development. It reaches beyond the supply of subsea equipment, now encompassing its installation.”

The Johan Sverdrup development is one of the largest developments on the Norwegian continental shelf, with expected resources of between 2.1-3.1 billion barrels of oil equivalents, according to Equinor. 

The first phase, which establishes a four-platform field center, is currently under development, with first oil scheduled for late 2019.

Phase two builds on this infrastructure with another processing platform and the development of the Avaldsnes (east), Kvitsøy (south) and Geitungen (north) satellite areas, and is scheduled to come on stream in the fourth quarter of 2022. Equinor expects total processing capacity to reach 660,000 barrels of oil per day.