Grane contract to Kværner

March 2, 2001, 00:00 CET

Hydro today awarded Kvaerner Oil and Gas the contract to build the power generation module and living quarters for the Grane platform in the North Sea. The contract has an estimated value of about NOK 500 million (USD 56 million).

The power generation module including the living quarters, weighing a total 5,500 tonnes, will be built at Kvaerner Rosenberg in Stavanger. A total of about 400 persons will take part in the work and the module will be delivered on May 1, 2003.

The contract was awarded in hard competition and has been based on a total evaluation of price and quality.

This contract is the last of the major contracts in the Grane project. The following major contracts have previously been awarded:

  • May 16, 2000, Kvaerner Oil and Gas was awarded the contract for the Grane production module, valued at approximately NOK 3.5 billion.
  • September 5, 2000, Safe Service AS was awarded a NOK 200 million contract for flotel rental during the hook-up phase.
  • October 11, 2000, Aker Maritime was awarded the contract for the drilling module, at a value of about NOK 1 billion.
  • October 31, 2000, Aker Verdal got a NOK 670 million contract for the the steel jacket for the Grane platform.
  • December 12, 2000, Veidekke ASA and Murphy Pipelines Ltd. got an EPCI landpipe contract worth about NOK 140 million.
  • January 24, 2001, Europipe GmbH and Mitsui & Co. Norway AS were awarded contracts worth NOK 275 million each for delivery of line pipe for the 217 km long export pipeline.

The Grane field, which is located some 185 kilometres west of Stavanger, Norway, will be developed with an integrated accommodations, process and drilling platform mounted on a steel jacket. Combined total investments are estimated at NOK 15 billion (USD 1.7 billion).

The Grane field, which has an estimated 700 million barrels of recoverable oil, is expected to reach a maximum output of 214,000 barrels per day in 2005. The oil will be transported by pipeline to the Sture terminal north-west of Bergen, Norway.

Hydro equity share in Grane is 24.4 percent. Field partners include Statoil with 6.4 percent, the state's direct financial investment (SDFI) with 43.6 percent and ExxonMobil with 25.6 percent.