Kvaerner has landed further work on Equinor’s under-development Johan Sverdrup field off Norway covering hook-up and commissioning of the utility and living quarters platform in a joint venture with affiliate Aker Solutions.
The pair, both owned by the Aker group, have also gained offshore work related to modifications of the riser platform under phase two of the giant North Sea project, which is being developed with the installation of four facilities under the first phase.
The latest deal, worth Nkr100 million ($12 million) for Kvaerner, follows Equinor’s decision to exercise an option in an original Nkr900 million contract for hook-up of the riser platform awarded jointly to the two local contractors in early 2017.
Kvaerner, which has already delivered three steel jackets for the project, is currently fabricating the utility and living quarters platform, as well as an additional module for the riser facility to be installed under phase two.
It will serve as sub-contractor to Aker Solutions under a 50:50 split operating model to carry out the additional workscope that entails planning, management and hook-up of the Johan Sverdrup utility and living quarters module, as well as hook-up work in connection with the phase two modifications of the riser platform.
Preparatory work is due to start this autumn with offshore activity to kick off in the spring of 2019 ahead of scheduled start-up of phase one of the field in the fourth quarter of next year.
The job will require employment of between 3000 and 4000 workers from both contractors.
State-controlled operator Equinor together with its partners are investing around Nkr88 billion on phase one of Johan Sverdrup, with another Nkr45 billion earmarked for phase two that is due for start-up in 2022, after slashing costs on the mammoth scheme.
The second phase will be developed using an additional processing platform and will entail modifications to the existing riser platform and subsea production and injection systems.
The full-field resource estimate was earlier this year raised to between 2.1 billion and 3.1 billion barrels of oil equivalent, up from the previous estimate of between 1.7 billion and 3 billion boe.
Production under the first phase is targeted at 440,000 barrels of oil equivalent per day, rising to 660,000 boepd under phase two, with the field expected to produce for 50 years and - accounting for about 25% of Norway’s total petroleum output at peak capacity.
Equinor operates the field with a 40.0267% stake with partners Lundin Norway (22.6%), Petoro (17.36%), Aker BP (11.5733%) and Maersk Oil (8.44%).
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