Kværner Secures Another Johan Sverdrup Contract from Statoil

Statoil has signed Kværner Verdal on board for another complex steel jacket delivery for the Johan Sverdrup drilling platform, Statoil announced today.

The contract, awarded by Statoil on behalf of the Johan Sverdrup partnership, is an execution of the letter of intent signed by Statoil and Kværner for delivery of two jackets for Johan Sverdrup located on the Utsira High in the North Sea, 155 kilometers west of Stavanger.

“An important part of the original letter of intent between Statoil and Kværner for delivery of steel jackets implied that the partners were to cooperate on realizing further improvements through standardization and simplification,” said Kjetel Digre, senior vice president for the Johan Sverdrup development project.

The drilling platform jacket will be delivered and installed on the Johan Sverdrup field in the spring of 2018. Weighing 22,500 metric tons, it will be the second largest of the jackets to be constructed during the first phase of the project.

“The Johan Sverdrup project activity will rise considerably in the time ahead as we take new steps in the development,” Digre said. “We are cooperating closely with the suppliers in the engineering of the platforms for the project. So far, we have awarded several main contracts and equipment packages at a value of more than NOK 43 billion.” 

Digre added, “More contracts will be awarded this autumn. We have already started on the first jacket for the riser platform at Kværner Verdal. So far, we are on track on the Johan Sverdrup development.”

At a water depth of 110-120 meters, the Johan Sverdrup reservoir lies at approximately 1,900 meters depth covering an area of 200 square kilometers. The field will be developed in phases, the first phase including a field center, wells, oil and gas export solution and power from shore.

The first phase of the Johan Sverdrup field development will consist of four installations, including a utility and living quarters platform, a processing platform, a drilling platform and a riser platform, as well as three subsea water injection templates. The platforms will be interlinked by gangways. 

The development of phase one is estimated to generate some 51,000 man-years, 22,000 man-years of which are expected to be delivered by suppliers, and some 12,000 man-years by their sub-suppliers. An average year is estimated to generate 2,700 man-years in the operating phase, and 3,400 man-years during full field development.

The investment costs in the first phase of the Johan Sverdrup development are estimated at around NOK 117 billion (2015 value), with expected recoverable resources in the range of 1.4 - 2.4 billion barrels of oil equivalent. The ambition is a recovery rate of 70 percent for Johan Sverdrup.

Daily production during Phase 1 is estimated at 315,000 – 380,000 barrels, while full production is estimated at 550,000 – 650,000 barrels of oil equivalent per day, accounting for some 40 percent of total oil production from the Norwegian continental shelf.

According to the impact assessment, total production revenues of NOK 1,350 billion over 50 years and corporation tax payable to the Norwegian state is estimated at NOK 670 billion.

The project’s license partners include the operator Statoil (40.0267 percent), Lundin Norway (22.6 percent), Petoro (17.36 percent), Det norske oljeselskap (11.5733 percent) and Maersk Oil (8.44 percent).