Kvaerner has signed an engineering, procurement and construction (EPC) contract with Equinor for delivery of the steel substructure for the Johan Sverdrup Phase 2 process platform. With this award Kvaerner will deliver the fourth substructure for the Johan Sverdrup Field, one of the world’s largest ongoing offshore projects. The value of the contract is approximately NOK 900 million.
The steel jacket substructure for the Phase 2 process platform is to be delivered from Kvaerner’s specialised facility in Verdal, Norway during spring 2021. The activity will be at its highest from September 2019 to May 2020, when 300 employees will be working on the project.
In addition to EPC, Kvaerner will also perform load-out and sea-fastening of the complete steel jacket substructure on a barge before sail-away to the field. The engineering work will be performed at Kvaerner’s offices in Oslo and will start immediately. The project management will be based at Kvaerner’s yard for advanced steel substructures in Verdal, where prefabrication will start early in the summer of 2019. When completed, the steel jacket will weigh slightly above 12,300 tonnes.
“The award of yet another contract won in international competition confirms Kvaerner’s position as one of the industry’s leading contractors for steel jacket substructures. In 2017 and 2018, Kvaerner delivered three out of the four jackets which are part of the first phase of the field development. Through a very effective cooperation with Equinor, we delivered all these three platform substructures to agreed quality, schedules and budgets. I am pleased to see that our customers confirm that we are a contractor offering an attractive combination of technical expertise and cost efficiency,” says Kvaerner’s President & CEO Karl-Petter Løken.
This award, together with previous contracts for deliveries to Valhall Flank West and modules for the Johan Castberg FPSO, will increase the opportunities for strategic development of the expertise at the Verdal facility for the coming years. The order book provides a good foundation for activity at the yard until spring 2021.
“We are very happy today! With the delivery of the substructure for Johan Sverdrup Phase 2 combined with the other order backlog, we have a good foundation for continuous improvement and long-term planning around future development of Kvaerner in Verdal. We have long experience from providing our customers with complete, integrated deliveries. Over the last few years, we have taken new steps for industrialising how we execute projects. This, combined with long term relations in the supplier’s market, enables us to offer flexibility to our customers”, says EVP Structural Solutions Sturla Magnus.
“With this contract, Kvaerner and the Norwegian supplier industry has once again proved it is competitive in an international market. In the first phase of the Johan Sverdrup development more than 70% of the contracts were awarded to suppliers in Norway. With this contract to Kvaerner, we expect an even higher share of Norwegian suppliers in the second phase of the development,” says Trond Bokn, Equinor’s senior vice president for the Johan Sverdrup development.
The contract is subject to approval of the plan for development and operation of Johan Sverdrup phase 2 that was submitted to Norwegian authorities on 27 August 2018.
Kvaerner has delivered both substructures and topsides to many of the world’s most demanding offshore projects and has been a main contractor to the majority of Norway’s oil and gas platforms. The new steel substructure will be number 46 in a series of substructures from Kvaerner in the last 45 years.