Statoil bucks the trend and orders $1bn oil platforms for Johan Sverdrup field

Statoil bucks the trend and orders $1bn oil platforms for Johan Sverdrup field

Athens: South Korea’s Samsung Heavy Industries has won a KRW 1.12tr ($1.06bn) fabrication contract to build two new offshore platforms, which will be deployed at the new Johan Sverdrup field in the North Sea.

The deal is the first contract for an offshore platform to be placed this year, after a slew of cancellations.

The order was placed by Statoil on behalf of the consortium of partners participating in the Johan Sverdrup project, which also includes Lundin Norway, Petoro, Det Norske Oljeselskap and Maersk Oil.

Samsung Heavy’s fabrication contract comprises decks for the 26,000-tonne process platform and the 22,000-tonne riser platform, which will be connected to a power cable from the shore. The platform deck will be also be manufactured at Samsung Heavy.

The contract should be completed by the end of 2018, according to a filing to the Seoul stock exchange today.

Norway’s Aker Solutions will provide engineering work and purchase of equipment packages for the two decks.

Construction of infrastructure in the Johan Sverdrup field, Norway’s biggest industrial project, began on Monday when the steel was cut for the riser platform jacket.

“Johan Sverdrup is a large puzzle in which many suppliers must deliver with precision, quality and on time in order for us to start production towards the end of 2019 and this contract is yet another important milestone for the Johan Sverdrup project,” said Margareth Øvrum, Statoil’s executive vice-president for technology, projects and drilling.

“Samsung has extensive experience in manufacturing such installations and we already have a good collaboration with the supplier. They have provided a competitive bid in a tough international competition.”

An estimated NOK 117bn ($14.86bn) is being invested phase 1 of the Johan Sverdrup development.

Phase 1 will comprise four installations, including a utility and accommodation platform, a processing platform, a drilling platform and a riser platform, in addition to three subsea templates for water injection. The platforms will be linked with bridges.

The field is estimated to have resources of between 1.4bn and 2.4bn barrels of oil equivalent, of which a recovery rate of 70% has been targeted.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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