Johan Sverdrup jacket contract award
Scheduled for delivery in the summer of 2017, the jacket's contract value is close to NOK 2.0 billion.
The contract is an execution of parts of the letter of intent which Statoil entered into with Kværner in 2014 for delivery of two of the four jackets for the Johan Sverdrup field development.
Arne Sigve Nylund, executive vice president for Development and Production Norway in Statoil. (Photo: Harald Pettersen)
"The Johan Sverdrup field is one of the biggest discoveries on the Norwegian continental shelf (NCS) and will be a building block for Norwegian industry and value creation throughout the field’s life."
"Statoil has prepared an ambitious plan for development and operation, with scheduled start-up in 2019. The contract with Kværner Verdal represents a significant step towards realising our high Johan Sverdrup ambitions,” says Arne Sigve Nylund, executive vice president for Development and Production Norway in Statoil.
"We are very pleased with the contract we have signed with Kværner. We cooperate closely with the company through the framework agreement. During the engineering period that started last summer Kværner has demonstrated its competitiveness in an international market. Statoil’s task is to deliver safe and efficient use of resources, and we are pleased to see that Kværner contributes in this regard through a competitive and future-oriented delivery model," says Margaret Øvrum, executive vice president for Technology, Projects and Drilling in Statoil.
Margareth Øvrum, executive vice president for Technology, Projects and Drilling in Statoil. (Photo: Ole Jørgen Bratland)
The first phase of the field development consists of four installations and jackets and comprises an accommodation platform, a drilling platform, a riser platform and a processing platform.
On plateau, the field production will constitute 25% of the total NCS production. Statoil’s ambition is to recover 70% of the reserves from a 50-year perspective.
This contract award is contingent on an investment decision for the Johan Sverdrup development scheduled for February 2015, and is subject to the Storting’s (the Norwegian parliament’s) approval of the plan for development and operation (PDO).
A press conference will be held at 11.00 in Rica Park Hotell Sandefjord.
Jannik Lindbæk jr,
Vice president, media relations
Phone: +47 977 55 622
Media contact for Statoil's upstream activities on the Norwegian continental shelf
Phone: +47 917 78 161
Facts about Johan Sverdrup
• Johan Sverdrup is one of the biggest oil discoveries ever made on the NCS. It is located in PL265 and PL501 on the Utsira High in the southern sector of the North Sea
• The field contains 1.8-2.9 billion barrels of oil equivalent, of which 95% is oil and 5% is rich gas
• Statoil's ambition is to recover 70% of the reserves. The expected field life is 50 years
• Total investments for the first development phase are NOK 100–120 billion
• The first development phase may provide 51,000 man-years in Norway. As many as 22,000 of these man-years may be performed by Norwegian suppliers and around 12,000 by their sub-suppliers
• During the operations phase an average year will generate 3400 man-years at full development
• Total production revenues over 50 years may amount to as much as NOK 1350 billion
• Of this amount, corporation tax alone will give the Norwegian state NOK 670 billion in direct revenue
• Depending on future selection of capacity and technical solutions, an early estimate indicates NOK 170–220 billion for a full development
• Peak production is expected to be in the range of 550,000 – 650,000 barrels of oil equivalent per day, which is around 25% of the NCS oil production.