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Norway: Construction of Processing Platform Statoil Signs Letter of Intent for Phase 2 of Johan Sverdrup Platform

| Editor: Alexander Stark

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 centre modifications was also issued to a joint venture of Aker Solutions and Kværner. Total value is estimated at more than $ 1.4 billion.

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Statoil signed letters of intent for Johan Sverdrup phase 2 with Aibel and Aker Solutions-Kværner joint venture.
Statoil signed letters of intent for Johan Sverdrup phase 2 with Aibel and Aker Solutions-Kværner joint venture.
(Source: Statoil)

Stavanger/Norway — Phase 1 of the Johan Sverdrup development is underway with planned startup in late 2019. To promote synergies and the development of the entire field the Johan Sverdrup partnership issues 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.

Kjetel Digre, senior vice president for Johan Sverdrup in Statoil said the signing of these two agreements, which involves three of the main suppliers from phase 1, expressed the desire to build on the experiences, collaboration and skill-sets developed into the second phase of the project.

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 $ 1.03 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 centre modifications, and installation and hook-up activities related to the phase 2 development. Contract value is estimated at $ 436 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 $ 7.7 billion. Of this, more than 70 % 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), the company announced.

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.

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