Equinor awards subsea production system contract for Johan Sverdrup phase 2

Source: press release, 20 March 2019

The Johan Sverdrup field in the North Sea (photo: Equinor ASA/Arne Reidar Mortensen)
The Johan Sverdrup field in the North Sea (photo: Equinor ASA/Arne Reidar Mortensen)

On behalf of the Johan Sverdrup licence, Equinor is awarding a contract for constructing and installing the subsea production system for project phase 2 to TechnipFMC. The production system consists of five templates and a total of 18 X-mas trees with associated components.

Plans call for the Johan Sverdrup field to start up in November 2019. To ensure synergies, continuity and a coherent field development, Equinor and the Johan Sverdrup partners – consisting of Aker BP, Lundin Norway, Petoro and Total – are awarding the contract for the subsea production system for the second development phase. Production start of phase 2 is scheduled for Q4 2022.

“This is an important milestone for the Johan Sverdrup development. We have now determined the subsea solution for both phase 1 and 2 of the field development, and TechnipFMC has been given the responsibility for both jobs. This gives us a good starting point for accelerating the collaboration on safety, efficiency improvement, simplification and technology development. Close collaboration in the execution phase lays the foundation for achieving good solutions and further simplifications in the operating phase. We are looking forward to that,” says Trond Bokn, senior vice president for the Johan Sverdrup development.

The beginning of the installation campaign for the topsides for both the processing platform and the utility and living quarters platform is planned this week. Once completed all four platforms in the first phase of the development will be in place at the field 160 kilometres west of Stavanger.

“Johan Sverdrup is the biggest ongoing industrial project in Norway. The field development has played a key role in terms of activity and spinoffs during a demanding period for the industry, not least in Norway. Norwegian suppliers have secured more than 70% of the Johan Sverdrup contracts, and this award further increases this share, demonstrating their ability to change and their competitiveness,” says chief procurement officer Peggy Krantz-Underland.

Arnaud Piéton, President Subsea at TechnipFMC, comments, “We have collaborated closely with Equinor establishing a Strategic Collaboration Agreement in 2018. This joint engagement is leading to further value creation for both of us and for Equinor’s Johan Sverdrup Phase 2 Development. It reaches beyond the supply of subsea equipment, now encompassing its installation. We are very proud of this joint engagement and very pleased to work alongside Equinor for the Johan Sverdrup Phase 2 development.”

The contracts are subject to approval of the plan for development and operation (PDO) for Johan Sverdrup phase 2, which was submitted to the authorities in August 2018. TechnipFMC describes the value of the contract as “significant”, defined to be in the range of USD 75-250 million.