Statoil hands out Johan Sverdrup pipeline contracts

  • Business & Finance

Norwegian oil and gas company, Statoil, has awarded three contracts which cover line pipe, coating and pipe installation of the Johan Sverdrup export pipelines.

Johan Svedrup field is located in the North Sea offshore Norway and it is operated by Statoil.

The overall value of the contracts is slightly less than NOK 2.5 billion (approx. $288 million).

The line pipe fabrication contract for the export pipelines was awarded to Mitsui & Co. Norway A.S. Mitsui will deliver 220 000 tonnes of steel for the oil and gas pipelines, totalling 430 kilometres. Line pipe production will start at Nippon Steel & Sumitomo Metal (NSSMC) steelworks in Japan early in 2016.

Wasco Coatings Malaysia Sdn Bhd was awarded the contract for external anti-corrosion treatment and concrete weight coating for the oil and gas pipelines, as well as internal flow coating for the gas pipeline. The work will be performed at Wasco’s factory in Malaysia in 2017.

Saipem Ltd has been awarded the pipe-laying contract for the Johan Sverdrup oil and gas export pipelines. The pipe-laying operation is scheduled to start in the spring of 2018, using the laying vessel Castorone.

Kjetel Digre, senior vice president for the Johan Sverdrup project, said: “We have selected a solid team of principal suppliers for the Johan Sverdrup export pipelines, and are thus well positioned to deliver first oil from Johan Sverdrup from late 2019.” 

According to Statoil, stabilised oil will be exported to the Mongstad terminal through a new oil pipeline connected to existing storage caverns. The oil export solution consists of a 274-kilometre, 36-inch pipeline to the Mongstad terminal, including required modifications at the terminal.

Gas will be exported to Kårstø gas terminal through a new gas pipeline. The gas export solution includes a 156-kilometre, 18-inch pipeline tied in to the Statpipe rich gas pipeline, including a hot-tap hook-up to this pipeline. No modifications are required at Kårstø for the reception of the Johan Sverdrup gas, Statoil said.

The company noted that more than $5.7 billion worth of contracts has been awarded so far in the Johan Sverdrup project.

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