Statoil hires local contractors for Johan Svedrup hook-up

Norwegian oil company Statoil has awarded contracts for the hook-up and commissioning works on the giant Johan Sverdrup field to three Norwegian companies – Aker Solutions, Aibel and Kvaerner.

Technically, the contracts have been given to Aibel and Aker Solutions, but Aker Solutions said on Tuesday that Kvaerner would formally operate as a subcontractor to Aker on a contract which will bring the two companies approximately NOK 900 million ($108.2 million), split evenly between the two.

Aker Solutions has been awarded the contract for hook-up and commissioning of the riser platform on the field center in 2018. The contract includes an option for hook-up and commissioning of the processing and accommodation platforms in 2019.

Luis Araujo, chief executive officer of Aker Solutions, said: “We’re very pleased to continue supporting Statoil in driving forward this giant development, which will be of major importance to Norway for decades to come.”

The work, Aker said, starts in February and will initially involve about 100 people from Aker Solutions, Kvaerner, and Statoil, rising to as many as 1,000 people at its peak next year. It will be carried out mainly in Stavanger and offshore. Kvaerner will work closely with Aker Solutions and contribute to all parts of the project delivery.

Including Aibel, the contracts awarded by Statoil have a total value of around NOK 1.3 billion, excl. options. The scope of work for the riser platform accounts for an estimated 70 % of the total scope committed in both contracts.

Aibel: 600 workers

Aibel has been awarded the contract to prepare and execute the hook-up of the new drilling platform at the Johan Sverdrup field in 2018. The project also includes connecting the platform’s systems towards the jacket and two gangways, splicing of high-voltage cables, and hook-up of a temporary hotel platform. In addition, Aibel will assist Statoil during commissioning and start-up offshore.

According to Aibel the first phase of the project will be characterized by preparatory activities in close cooperation with the drilling platform project. The topside for the drilling platform will be completed and ready for installation in spring 2018. Then, an offshore phase begins for the Aibel crew, which will consist of up to 600 employees in rotation towards the summer of 2019.

Johan Sverdrup is dubbed as the largest offshore development in the past three decades. The Statoil-operated field is located in the North Sea around 155 kilometers west of Karmøy in Rogaland county. Partners in the field include Lundin Norway, Petoro, Aker BP, and Maersk Oil.

Phase one of Johan Sverdrup consists of four bridge-linked platforms, in addition to three subsea water injection templates. The planned production capacity of the first phase is 315 000 to 380 000 barrels of oil equivalent per day.

Announcing the contracts, Statoil said that preparations “start immediately.”

“Kicking off in the summer of 2018 the hook-up work offshore represents the final and crucial phase prior to first oil on the Johan Sverdrup field. In this phase the jackets, platforms, wells, subsea equipment, export pipelines and power from shore will be hooked up to form a fully functioning field centre that will come on stream in late 2019,” Statoil said.

Two mobile accommodation facilities in addition to the Johan Sverdrup accommodation platform combined have the capacity to accommodate more than 1,200 people offshore.

“The scope of work is extensive and in the peak period an estimated 650 positions will be needed offshore, rotating on three shifts, i.e. almost 2,000 offshore workers. The entire Johan Sverdrup development puts the industry to the test again due to the size of the project. The Johan Sverdrup commissioning will be the most complex and extensive commissioning project offshore that Statoil has ever been responsible for over its 40 years as an operator on the NCS. It will be demanding, but we have solved complex tasks before with our suppliers,” says Kjetel Digre, Statoil’s project director for Johan Sverdrup.