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Njord A upgrade contracts awarded

Written by  Friday, 17 March 2017 04:06

Norwegian engineering firm Aker Solutions is to provide design engineering for Statoil's semisubmersible Njord A platform upgrade in Norway under sub-contract to Kvaerner, which in turn has a US$590 million engineering, procurement and construction contract on the job.

The Njord field, in the Norwegian Sea, had its first production in 1997. Last year, production was stopped at Njord and Hyme after a structural integrity issue was found on the Njord A facility during an inspection in 2013. Drilling was stopped and the deck reinforced, but in August last year Njord A was towed to Kvaerner's Stord facility, where it was originally built, (see video below). In December, it was put in dry dock ready for the extensive modifications to both extend its operating life out to 2040 and accommodate a number of new satellite field tie-back developments, including the Bauge (previously called Snilehorn), Bue and Pil ("bow and arrow" in Norwegian) fields.

The platform will stay in dry dock until the autumn of 2017 for extension and reinforcement of the hull. It will subsequently lie alongside the quay for further reinforcement and upgrading work in the period up to the delivery in 2020, with start-up expected in the same year.

These, as well as a redevelopment of the Njord and Hyme fields, come under Statoil's Njord Future Project, which will also see the Njord Bravo storage vessel upgraded, at Kristiansund. 

"This is the largest offshore platform in Norway to have been brought to shore for a total upgrade," said Luis Araujo, chief executive officer of Aker Solutions. "We're excited to continue our work with Kvaerner and Statoil on this landmark project, which will enable the Njord field to keep producing oil and gas for several more decades."

Aker Solutions contract option is for work in the engineering, procurement and construction phase of the project. Aker Solutions' share of the work is valued at about US$120 million (NOK 1 billion) and will be booked in the company's Q1 orders.

Aker Solutions' office in Bergen will execute the engineering work with support from the company's division in Oslo, working as part of an integrated team with Kvaerner. The work has already started and will at its peak involve about 330 Aker Solutions' employees. Delivery is scheduled for spring 2020.

"We have together with Kvaerner and Statoil succeeded in significantly lowering costs on this project and we are now focused on keeping up the momentum," said Knut Sandvik, head of projects at Aker Solutions.

Aker Solutions has previously delivered concept and feasibility studies as well as front-end engineering and design (FEED) work for the Njord upgrade. The subcontractor agreement with Kvaerner includes an option for prefabrication work.

The contract award is conditional pending approval of the plan for development and operation (PDO) for Njord from the authorities. The Njord partners recently made an investment decision and are planning to submit PDO shortly.

Video

Image: Njord A. Photo by Thomas Sola, from Statoil.

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