Statoil Awards Polarled Pipeline Contracts Worth $722 Mln (Norway)
Statoil has awarded Marubeni Itochu/JFE contracts for fabricating linepipe for the Polarled pipeline, Wasco for applying coating, and Allsea for pipelaying. The coating contract include the establishement of a new production base in Mo i Rana, Northern Norway.Estimated contract value for the three contracts in total is NOK 4 billion.
The contracts are awarded on behalf of the partners in Polared and based on a broad international competition between pre-qualified suppliers.No other oil/gas pipeline of this dimension has ever been laid at these water depths before. The Polarled-pipeline will export gas from the Aasta Hansteen field in the Norwegian Sea to the Nyhamna gas plant.
“The Norwegian Sea is an exciting area on the Norwegian Continental Shelf. Polarled underpins this. Establishing new infrastructure increases the possibilities of the discoveries already made, and at the same time paves the way for further exploration and development of future discoveries,” says Rune Bjørnson, Statoil’s head of Natural Gas.
Wasco is an international renowned supplier who has been keen to get to know and make use of multiple subcontractors from Norway and especially in Nordland County. These sub-suppliers will contribute Wasco in the establishment phase of a brand new production facility for applying concrete coating in Mo in Rana, Northern Norway.
“Experienced local companies will provide services to Polarled such as goods from land, buildings, port services, construction, maintenance, logistics and raw materials for the production process. Locally in Mo i Rana, it is estimated a need for about 50 employees locally in the production period until 2015,” says Statoil’s Chief Procurement Officer, Jon Arnt Jacobsen.
The order for steel at approximately NOK 2 billion includes pipes, bend and buckle arrestors. Until the pipe laying in 2015, there will be produced 325,000 metric tons (MT) steel for the 482 km long pipeline. The steel pipe will be 36 inch diameter and shall be laid down to a 1265 meters water depth, which is the world’s deepest operation laying this size of pipe.
The pipes will then be shipped from the supplier in Japan to Malaysia, where they are applied flow coating on the inside and anti-corrosion coatings on the outside.
Moreover the pipes will be shipped to Mo i Rana for application of exterior concrete weight coating to protect the pipelines, before they are stored until the pipeline installation in 2015. The coating contract is estimated to NOK 1.2 billion. Wasco will use existing buildings in Mo i Rana (Mo Industrial Park) to establish the factory for application of concrete coating.
The pipe laying contract has a value of NOK 750 million, and preliminary engineering work has already started. A dynamic positioned lay vessel without the use of anchors will be utilised. The pipeline installation will start by pulling in the pipe at Nyhamna in March 2015 and ends with lay down at Aasta Hansteen Q3 2015.
Options for linepipe to Kristin is included in the contract, value of this option will come in addition to the stated value of the three contracts.
The contracts awarded are subject to regulatory approval of the project, which is expected first half of 2013.
Statoil delivered late 2012 a Plan for installation and operation (PIO) to the Ministry of Petroleum and Energy together with the other partners in Polarled. The investment for the Polarled development is estimated to NOK 25 billion.
Press Release, February 18, 2013