Equinor orders subsea production system for Johan Sverdrup phase 2 from TechnipFMC

Norway’s Equinor has awarded a contract for constructing and installing the subsea production system for Johan Sverdrup project phase 2 in Norway to TechnipFMC.

The production system consists of five templates and a total of 18 X-mas trees with associated components, Equinor said on Wednesday announcing the contract.

In a separate statement on Wednesday, TecnipFMC said that the contract covers the delivery and installation of the subsea production system including integrated template structures, manifolds, tie-in and controls equipment. The value of the contract for TechnipFMC is between $75 million and $250 million.

According to Equinor, plans call for the Johan Sverdrup field to start up in November this year. To ensure synergies, continuity and a coherent field development, Equinor and the Johan Sverdrup partners – consisting of Aker BP, Lundin Norway, Petoro and Total – are awarding the contract for the subsea production system for the second development phase. Production start of phase 2 is scheduled for 4Q 2022.

Trond Bokn, senior vice president for the Johan Sverdrup development, said: “This is an important milestone for the Johan Sverdrup development. 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. 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. We are looking forward to that.”

Equinor said that the beginning of the installation campaign for the topsides for both the processing platform and the utility and living quarters platform is planned this week. The living quarter topside, the fourth and last platform for the first phase of the Johan Sverdrup project, was ready for sailaway late last week. Once completed, all four platforms in the first phase of the development will be in place at the field 160 kilometers west of Stavanger.

“Johan Sverdrup is the biggest ongoing industrial project in Norway. The field development has played a key role in terms of activity and spinoffs during a demanding period for the industry, not least in Norway. Norwegian suppliers have secured more than 70% of the Johan Sverdrup contracts, and this award further increases this share, demonstrating their ability to change and their competitiveness,” said chief procurement officer Peggy Krantz-Underland.

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.

The Johan Sverdrup is located on the Utsira Height in the North Sea, 160 kilometers west of Stavanger. Oil from the field will be piped to the Mongstad terminal in Hordaland. Gas will be transported via Statpipe to the Kårstø processing plant in North Rogaland. First-phase investments estimated at NOK 88 billion.