Statoil establishes frame agreement with Kvaerner

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Statoil today enters into a frame agreement with Kvaerner for the delivery of jackets for the North Sea in the period up to 2020. At the same time, the companies will sign a letter of intent for the delivery of two jackets to the Johan Sverdrup field.

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Statoil CEO Helge Lund and Jan Arve Haugan, President & CEO Kvaerner, signing the agreement. (Photo: Asle Haukedal AP/Statoil)

The frame agreement gives Kvaerner the opportunity to perform engineering, purchasing and steel jacket construction in the North Sea in the period up to 2020. This agreement ensures greater consistency and secures Statoil the access to competitive expertise and capacity that will be crucial to forthcoming developments.

“It is highly pleasing that Kvaerner has managed to come up with a competitive and forward-looking delivery model. By so doing, Kvaerner has demonstrated that cost-reduction measures and increased efficiency do bear fruit. This is inspiring for us in Statoil. Safe and cost-effective resource utilisation and long-term value creation are our most important tasks,” states Statoil CEO Helge Lund.

Statoil has for some time now been actively involved in efforts to boost the competitiveness of the Norwegian supplier industry through collaboration with the industry in Konkraft, as well as by close dialogue with several suppliers relating to opportunities for simplification, greater efficiency and cost reduction.

Through this agreement Statoil have secured critical deliveries at internationally competitive terms. This frame agreement is also a tool for further industrialisation and standardisation, which will be of significance in securing long-term competitiveness.

The first Statoil development to avail itself of this agreement is Johan Sverdrup, which will include four installations and  jackets.

“The Sverdrup development is historic and the biggest on the Norwegian continental shelf since the 1980s. It is an industrial development with a 50-year perspective. This letter of intent signifies a fresh step forward in planning the first phase of Johan Sverdrup,” adds Lund.

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Illustration of Johan Sverdrup drillingplatform (left) and riserplatform.

Statoil, its partners and Kvaerner are today signing a letter of intent relating to the delivery of two steel jackets to the Johan Sverdrup development. The agreement comprises the riser platform and drilling platform – the two largest and most demanding steel jackets at the field centre. The jacket for the riser platform is due for delivery in summer 2017 and the drilling platform jacket in spring 2018.

The letter of intent for the first two platforms on the Johan Sverdrup field is contingent on an investment decision for Sverdrup being reached in February 2015.

Kvaerner is already involved in the development of Johan Sverdrup through its role as subcontractor on the field centre pre-project. Aker Solutions is responsible for the pre-project and, as part of this, is using Kvaerner for the design of the field centre’s jacket.

The contracts for the steel jacket for the accommodation quarters and the processing plant are expected to be awarded in the middle of 2015. Kvaerner is one of several potential suppliers.

A press conference, with CEO Helge Lund and Jan Arve Haugan, President & CEO Kvaerner, will be held at 9.15 at Statoil’s research centre, Rotvoll. Address: Arkitekt Ebbels veg 10. Attendance for the press at the reception.

The press conference can also be followed via web cast on statoil.com (Norwegian only)

Facts

Johan Sverdrup field (PL 265, PL 501 and PL502)

  • Johan Sverdrup is an oil field.
  • It consists of a combined discovery making up one field.
  • Location: Utsira High in the North Sea, 140 kilometres west of Stavanger.
  • The water depth is 110 metres, and the reservoir is located at a depth of 1900 metres.
  • Plan for Development and Operation (PDO) expected to be dealt with by the Storting in the spring session of 2015.
  • Production start-up is scheduled late 2019.
  • The field has a production horizon of 50 years.
  • It was decided early in 2013, as part of the design basis, that the field would be developed in phases. The first phase involves the establishment of a field centre consisting of four platforms.
  • It is recommended that the oil is piped from the Mongstad terminal in Hordaland and that the gas is pied to Statpipe and then on to the Kårstø processing plant in North Rogaland.
  • The field will be operated using land-based power.

Licence holders:

Production licence 501: Lundin Norway (Operator – 40%), Statoil (40%), Maersk Oil (20%)

Production licence 265: Statoil (Operator – 40%), Petoro (30%), Det norske oljeselskap (20%), Lundin Norway (10%)

Production licence 502: Statoil (Operator – 44.44%), Petoro (33.33%), Det norske oljeselskap (22.22%)

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