Subsea 7 wins last major subsea contract for Johan Sverdrup phase 2
- Business & Finance
Subsea 7 has been awarded a substantial contract by Equinor for the Johan Sverdrup Phase 2 project, located in the North Sea, 160 kilometers west from Stavanger in Norway.
The first phase of the Johan Sverdrup development is nearly 90% completed, with expected production start in November. In phase 1, Subsea 7 was responsible for delivery and installation of several subsea components and tie-in of pipelines at the field.
Equinor said on Thursday that this latest contract award to Subsea 7 will increase the share of contracts awarded to Norwegian suppliers in phase 2 of the Johan Sverdrup project to 85%. Subsea 7 defines a substantial contract as being between $150 million and $300 million.
According to Subsea 7’s statement on Thursday, the EPIC contract comprises project management, engineering, procurement, construction and installation of approximately 100 kilometers of rigid pipelines, including 40 kilometers of pipe-in-pipe flowlines, 27 kilometers of water injection and 37 kilometers of gas injection pipelines.
The Marine Operations scope includes the installation of 23 kilometers of umbilicals, tie-in spools, and precommissioning.
Trond Bokn, Equinor project director for the Johan Sverdrup development, said: “Subsea 7 is awarded the last major subsea contract for Johan Sverdrup phase 2. Based on good experiences and learning from phase one, the award will ensure continuity and a coherent development of the entire Johan Sverdrup field. This will give us a good foundation for enhancing our collaboration on safety, efficiency and further improvements in the execution phase and afterwards in the operating phase.”
Project management and engineering will start immediately at Subsea 7’s offices in Stavanger, Norway. Fabrication will take place at Subsea 7’s spoolbase at Vigra, Norway and offshore operations will be carried out in 2021 using a number of vessels, including one of the company’s diving vessels and a reel-lay vessel specially designed to deliver innovative flowline technologies that address long-distance and more complex tie-back developments.
Monica Bjørkmann, Subsea 7’s Vice President Norway, said, “This award continues our long-standing collaborative relationship with Equinor and draws upon Subsea 7’s substantial experience in delivering SURF solutions reliably, safely and sustainably.”
Johan Sverdrup is regarded as Norway’s biggest industrial project in modern history. The Agenda Kaupang consulting company estimates that the Johan Sverdrup project may provide more than 150,000 man-years in Norway in the development period 2015-2025.
Phase 2 of the Johan Sverdrup development was approved by Norwegian authorities in May 2019. Start-up of phase 2 is scheduled for the fourth quarter of 2022.
The Johan Sverdrup licensees are Equinor (operator), Lundin Norway, Petoro, Aker BP, and Total.
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