Production start as scheduled for Edvard Grieg

30 November 2015 - The new Edvard Grieg offshore platform at the Norwegian continental shelf has started production in line with the schedule.

The new Edvard Grieg offshore platform at the Norwegian continental shelf has started production in line with the schedule.
The new Edvard Grieg offshore platform at the Norwegian continental shelf has started production in line with the schedule.

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“It is a top tier achievement to get a large platform of more than 20 000 tonnes on stream less than three years and seven months after award of the contract for the topsides. To deliver on time and with the planned quality means huge values for both the companies and for the society. The entire industry can salute that Lundin Norway has demonstrated the combination of predictable execution with a tight schedule”, says Jan Arve Haugan, President & CEO of Kvaerner.

Through this autumn, Kvaerner has worked offshore to prepare the new platform for the start of the oil production. At 3 May 2012, Kvaerner was awarded the main contract for delivering the complete 20 000 tonnes topside, including engineering, procurement and construction (EPC). The same year, the company was also awarded the corresponding contract for the complete delivery of the 14 500 tonnes steel jacket substructure.

Various phases of the project have been executed at Kvaerner’s offices in Oslo as well as at the corporation’s specialised facilities at Stord and in Verdal in Norway. In addition, Kvaerner has drawn upon a wide range of suppliers both in Norway and abroad. Key subcontracts include Aker Solutions in Egersund and in Oslo as well as Apply at Stord.

The project has provided significant positive effects for both more than 150 suppliers and the communities where they are based. At peak, the project involved more than 7 500 personnel both directly and indirectly.

Public analyses document that domestic value creation may be as much as 50 percent higher when the EPC contracts are executed in Norway, compared to when the main scope is executed by contractors elsewhere. For Kvaerner’s scope as the main contractor, the domestic value creation has been well above 60 percent.

- Sustaining a valuable oil and gas industry with a predictable activity level depend on our ability to reduce the costs significantly. Simultaneously, we must further develop expertise and technologies. The industry’s own analyses document that the knowhow and capabilities of the contracting industry is fundamental for the entire industry’s competitiveness. On top of improvements in individual companies, the oil and gas business should review the entire value chain composition in order to harvest the largest enhancements. It is vital that we can further build on the strong results which Lundin and their license partners have created through the Edvard Grieg projects, says Haugan.

Production from the Edvard Grieg field is expected to reach around 100 000 barrels of oil equivalents per day. Lundin Norway AS is operator and owns 50 percent of the license. The other partners are Wintershall Norge with 15 percent, OMV Norge with 20 percent and Statoil with 15 percent.

- With the Edvard Grieg on stream, Lundin Norway have become operator for their first platform in operation. The development has enabled both Kvaerner and the wider contracting industry to further build competence and competitiveness. We thank Lundin for their confidence and for a very constructive cooperation, and extend our congratulations on this milestone day, says Jan Arve Haugan.