Construction starts on one of the largest offshore developments in Europe

Norway’s oilfield contractors Kvaerner and Aker Solutions have cut the first steel plate for phase 2 of the Equinor-operated Johan Sverdrup field development offshore Norway. 

After the start of oil production, this installation will become one of Norway’s most important income sources for the coming decades, Kvaerner said on Thursday.

The Johan Sverdrup development, including phase 1 and phase 2, is already one of the largest current industry projects in Europe with approximately 150 000 man-years involved in developing the various installations.

The big Johan Sverdrup field is located around 160 kilometers west of Stavanger, and Kvaerner is one of the suppliers that have won the most contracts for the project. For phase 2 of the project, the contract for Kvaerner in a 50/50 partnership with Aker Solutions includes engineering, procurement and construction of a 5 000 tonnes utility module with new systems.

The total contract value is NOK 3.4 billion ($398 million) and also includes modification work on the field center, plus offshore installation and integration work in connection with phase 2 of the field development. The construction of the module will be conducted by Kvaerner at the company’s facility at Stord, Norway. The project is scheduled for completion in 2022.

Ripple effects for 2,000 jobs

At Stord on Thursday, first steel was cut for the second phase of the facility that will become one of Norway’s biggest sources of incomes in the coming decades. The very first steel plate to be cut will be utilized at a bridge support module which will be positioned where a new bridge is connected to the existing riser platform at the Johan Sverdrup development.

“Phase 2 of Johan Sverdrup is realized through solid cooperation between Equinor and the Norwegian supplier industry to reduce field development costs significantly. This means even higher value creation for Norway, both through industrial development and employment throughout the country, and it includes significant income from future production of oil and gas,” says Karl-Petter Løken, CEO in Kvaerner.

For Kvaerner, the peak manning on the project will be around 550 people and a further 300 in Aker Solutions. Including subcontractors, service companies, etc., the contract is expected to create ripple effects for around 2,000 jobs.

Phase 2 start-up in 2022

The sections of the Johan Sverdrup field that are built in phase 1 will start production in 2019, while the sections in phase 2 will have production start-up in 2022. Phase 1 includes four platform topsides on steel jackets, where Kvaerner is the supplier of one topside and three steel jacket substructures. Phase 2 includes a new platform topside on a steel substructure, including the new module that Kvaerner will deliver in cooperation with Aker Solutions. Kvaerner will also supply the steel jacket that will carry the new phase 2 processing platform topside.

“Johan Sverdrup is not only Kvaerner’s most important project in recent years, it is also Norway’s biggest industry project in recent times. Kvaerner is a very proud contributor towards safe and reliable execution of this giant project, plus the enormous ripple effects and values it creates throughout the entire country,” says Karl-Petter Løken.