Fjords Processing Bags Johan Sverdrup Contracts

Fjords Processing, headquartered in Norway (Fornebu), has won three contracts for the deliveries of process systems for the Johan Sverdrup development in the North Sea. The contracts were signed with Statoil (STO) on behalf of the Johan Sverdrup license. Scope of work within the contracts entails concept development studies, design, engineering, fabrication and services of processing technology and expertise:

   * Delivery of the oil separation package; consisting of totally seven separators
   * Delivery of gas dehydration system - including the TEG (triethylene glycol) regeneration facility
   * Delivery of electrostatic coalescers to remove water from oil

The contracts were awarded in tough competition with several larger international companies. Rune Fantoft, CEO of Fjords Processing comments: "The contracts are strategically important for Fjords Processing, being a recently established, Norwegian supplier ."(independent company since the separation from Aker Solutions (AKSO.OL) in September 2014).

Fantoft continues: "Taking part in the Johan Sverdrup development and cooperating with Statoil and Aker Solutions is of huge importance for us and for the Norwegian oil service industry. Though we are a niche, specialist supplier, we contribute with the vast Norwegian competence we have built over years, as part of the Aker group and through our relationship with Statoil. We look forward to continuing our partnership with these key players".

So far the Norwegian supplier industry has won the majority of the Johan Sverdrup contracts.

"The Norwegian supplier industry has started showing that we also can offer competitive conditions compared to international suppliers. Developing the needed processes and setting the right priorities is key to meet the contractors' and end clients' requirements and expectations of cost reductions. A more effective cooperation with partners and other contractors, will be key to succeed with ongoing improvements", says Rune Fantoft.

As part of Fjords Processing's strategic development, the company is looking into the opportunities for developing integrated offerings - among others, the combination of technologies to reduce weight and cost.

"Being a supplier with a broad portfolio of processing wellstream technologies, we aim at designing more integrated, and thereby more efficient, solutions for our end clients - including guaranteeing the processing performance", Fantoft says.

The execution of the agreed deliveries will start in 2015 and will be delivered at the end of 2016.

The separator package and the coalescers will be managed and manufactured by Midsund Bruk, one of Fjords Processing's subsidiaries and workshops.