Samsung Heavy Wins Johan Sverdrup Contracts

Johan Sverdrup rendering. Photo: Statoil
Johan Sverdrup rendering. Photo: Statoil

 

South Korean shipbuilder Samsung Heavy Industries has been awarded an NOK 7 billion (US$890 million) contract from Statoil for the construction of the process and riser platforms for the Johan Sverdrup development project offshore Norway.

The contract calls for the fabrication of the decks for both the processing platform and riser platform – two of of four installations that will be constructed during phase 1 of the project.

The function of the process platform, which weighs approximately 26,000 tonnes, is to ensure stabilization of the oil and processing into rich gas. The riser platform, meanwhile, weighs approximately 22,000 tonnes and will serve oil and gas exports, water and gas injection, as well as any future connections. The power cable from onshore also ends at the riser platform, where the current is transformed from direct current into alternating current for further distribution to the field centre.

The platform deck will be manufactured at the Samsung’s shipyard in South Korea.

“Johan Sverdrup is a large puzzle in which many suppliers must deliver with precision, quality and on time in order for us to start production towards the end of 2019 and this contract is yet another important milestone for the Johan Sverdrup project. Samsung has extensive experience in manufacturing such installations and we already have a good collaboration with the supplier. They have provided a competitive bid in a tough international competition,” says Margareth Øvrum, executive vice president for Technology, projects and drilling at Statoil.

Phase 1 of the Johan Sverdrup project will consist of four bridge-linked installations, including a utility and accommodation platform, a processing platform, a drilling platform and a riser platform, in addition to three subsea templates for water injection.

With this latest award, all contracts for the four platform decks have been awarded. The decks for the drilling platform and accommodation platform have already been awarded to Aibel (EPC) and Kværner Stord (EPC). In addition, 65% of the equipment packages have so far been awarded to suppliers in Norwegian.

“Johan Sverdrup will be of major significance to the whole of society for at least 50 years into the future. We now have in place a broad and strong team in the supplier industry to construct the decks for the four platforms. This provides the most optimal conditions for project delivery in terms of quality, time and cost,” says Øivind Reinertsen, project director of Johan Sverdrup field development.

Located in the North Sea approximately 96 miles west of Stavanger, Norway, Johan Sverdrup is one of the biggest oil discoveries ever on the Norwegian continental shelf, with expected resources of between 1.7 and 3 billion barrels of oil equivalent. The first-phase of the project will involve the establishment of a field hub consisting of four platforms and is estimated to cost approximately NOK 117 billion (US $14.8 billion). A second phase of development is expected to start in 2022.

Statoil announced Monday that the first piece steel for the riser platform jacket was cut at the Kvaerner Verdal yard in Norway on June 29, marking the official start of production of the first elements of Johan Sverdrup project.

The Johan Sverdrup partnership consists of Statoil, Lundin Norway, Petoro, Det norske oljeselskap and Maersk Oil. The partnership has recommended that Statoil be operator for all the field’s phases.

Production start-up at the field is scheduled for the end of 2019.