Statoil hires Kvaerner for Johan Castberg topsides job

Norway’s Kvaerner has signed a contract with compatriot Statoil for delivery of the topside modules for the Johan Castberg floating production vessel (FPSO), as well as for hook-up and integration of the topside modules with the hull.

Kvaerner’s scope of work for the FPSO will at peak involve around 2 000 Kvaerner employees and subcontractor personnel. The contract value is approximately NOK 3.8 billion ($480.9M), Kvaerner informed on Tuesday.

The development work will take place at several yards along the Norwegian coast.

“This is one of the large pieces of the Johan Castberg puzzle, and is a key component of the FPSO. The contract includes building a total of ten modules, flare boom and central pipe rack,” says Torger Rød, Statoil’s senior vice president for project management control.

The Johan Castberg field in the Barents Sea will be developed with a ship-shaped FPSO. Kvaerner’s scope includes fabrication of the topside modules, where the majority of the modules will be delivered from Norwegian yards. Kvaerner’s facility at Stord will fabricate the modules for gas injection, for the re-compressor and for separation, while the company’s specialized facility in Verdal will fabricate the module for seawater handling and the main pipe rack.

450 million crowns for Aker Solutions

As subcontracts to Kvaerner, Aker Solutions’ yard in Egersund will deliver the modules for water and chemical injection, while the company’s facility in Sandnessjøen will deliver smaller modules and the flare boom. Aker Solutions’ part of the work has a value of about NOK 450 million.

The construction work is scheduled to last until late 2021, followed by a complex assembly period. The topside will be installed on the hull and connected to the turret.

The hull including living quarters fabricated for Statoil by Sembcorp Marine in Singapore, will be delivered to Kvaerner’s facility at Stord in the autumn of 2020.

The installation of all modules and integration will start immediately after arrival of the hull. The FPSO will be fully completed including commissioning and testing at Stord before the planned sail-away to the field in the first quarter of 2022. First oil from the field is scheduled for the first half of 2022.

Kvaerner said that the initial project planning will start immediately, and fabrication will start already in the fourth quarter of 2018. Kvaerner also plans an investment in a yard upgrade of its facilities at Stord.

According to Statoil, capital expenditures for the Johan Castberg project are estimated at some NOK 49 billion and the jobs generated nationwide during the development are estimated at slightly less than 47,000 man-years.

The field will be producing for more than 30 years. Recoverable resources are estimated at 450 – 650 million barrels of oil equivalent.

Offshore Energy Today Staff