Statoil awards $185 million for three fields

Norwegian giant Statoil handed out several contracts worth more than US$185 million (NOK 1.6 billion)for its Oseberg Vestflanken 2, Johan Sverdrup, and Ging Krog fields offshore Norway.

CEO Steinar Riise is signing the contract for Ocean Installer, while Sølve Grude and Frode Sivertsen are signing for the Oseberg Vestflanken 2 project. Image from Statoil / Eva Sleire

Companies that were awarded contracts, which all have a proven track record with Statoil, include Heereema Fabrication Group, Technip, Ocean Installer, and Aibel or work that includes marine operations, marine construction, engineering, procurement and construction (EPC) of an unmanned wellhead platform as well as modifications at the Oseberg Field Center.

According to Statoil, the company submitted the plan for development and operation (PDO) of Oseberg Vestflanken 2 in late-December, which leaves the contracts awarded for the field subject to government approval of the PDO.

The field development will provide 110 MMboe, and will be profitable even in a low oil price scenario, Statoil said.

Heerema Fabrication Group landed the highest paid projects at a combined total of about $93 million (NOK 800 million) for the EPC of the unmanned wellhead platform at Oseberg Vestflanken 2. The company will be responsible for transport and installation of the platform.

French company Technip’s Norwegian arm, Technip Norway won two contracts for pipelaying at both the Johan Sverdrup, and Oseberg Vestflanken 2 for a total of approximately $46.4 million  (NOK 400 million).

Ocean Installer was awarded contracts for all three fields for marine construction and installation at Oseberg Vestflanken 2, Johan Sverdrup and Gina Krog for a combined contract total of about $23 million (NOK 200 million).

At Oseberg work scope encompasses fabrication of pipeline spools and protection covers, as well as installation of umbilical, tie-in and pre-commissioning. The Johan Sverdrup work will include the installation of three subsea templates for water injection. Work scope for the Gina Krog field consists of fabrication of spools and installation of pipeline end manifold (PLEM) structure, pipeline spools and protection covers.

Ocean Installer said it will utilize a combination of its large construction support vessel (CSV) Normand Vision and the smaller CSV Normand Mermaid for the work. The offshore operations will take place in Q2 and Q3 2017.

Norway’s Aibel won a $23 million (NOK 200 million) contract for implementation of the Oseberg Vestflanken 2 brownfield topside project, which comprises engineering services, procurement, fabrication and installation (EPCI).

According to Aibel, the company will perform the necessary operations to make the platforms at Oseberg Field Centre ready to receive the well stream from a new, unmanned wellhead platform (UWP) and new wells from the existing template. In addition, Aibel will carry out modifications to the field center to make it possible to remotely control and supply the unmanned wellhead platform with power and chemicals. 

Work on the implementation phase starts immediately, and will continue until Q3 2017. 

Statoil is the operator of Oseberg Vestflanken 2 with 49.3% stake. Partners include Petoro (33.6%), Total (14.7%) and ConocoPhillips (2.4%).

Statoil is the operator of Johan Sverdrup with 40.0267% interest. Partners are Lundin Norway (22.6%), Petoro (17.36%), Det norske oljeelskap (11.5733%) and Maersk Oil (8.44%).

Statoil is also operator of Gina Krog with 58.7% stake, along with partners Total E&P Norge (30%), PGNiG Upstream international (8%) and Det Norske Oljeselskap (3.3%). 

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