ExxonMobil Canada Properties has released the option for Kvaerner's joint venture company Kiewit-Kvaerner Contractors to provide the full scope of engineering, procurement and construction (EPC) services for the Hebron Project gravity based structure (GBS).
The contract value for Kvaerner's share of the full EPC contract is approximately $1.5 billion and includes work conducted to date on the Hebron project.
The authorization to proceed with the full EPC contract follows the substantial completion of the Front End Engineering and Design (FEED) and site preparation contract awarded 9 November 2010 and the authorization of 25 April 2012 to proceed with detailed EPC related services throughout 2012.
The work will be performed in Newfoundland and Labrador, Canada, with engineering in St. John's and construction at the Bull Arm fabrication yard.
The completed GBS will be installed at the Hebron field on the Grand Banks in the Atlantic Ocean located 350 kilometers offshore from St. John's, Newfoundland and Labrador, Canada. First oil is anticipated by the end of 2017.
"We are very pleased that Kiewit-Kvaerner Contractors has been selected to deliver the Hebron GBS. This is a strategically important project for us and we believe it confirms our strong position within arctic technologies in general and gravity based structures (GBS) in particular", said Bjørn Gundersen, executive vice president in Kvaerner, responsible for concrete solutions.
Kvaerner has a long track record for offshore concrete structures, with a series of concrete structures, both fixed and floating designed, constructed and installed on the Norwegian Continental shelf between 1971 and 1993.
Recent offshore concrete projects by Kvaerner are substructures for two platforms, installed in 2005 east of Sakhalin in Russia for Sakhalin Energy, the Adriatic LNG terminal installed in 2008 outside Venice in Italy, and the Arkutun-Dagi GBS for the Sakhalin-1 project constructed in Nakhodka, Russia and delivered to Exxon Neftegas Limited in June 2012.
Kvaerner and Peter Kiewit Infrastructure have a long history of working together, including the White Rose Floating Production, Storage and Offloadingsystem (FPSO) project for Husky Energy.
GBS contract parties are ExxonMobil Canada Properties and Kiewit-Kvaerner Contractors.