Construction start for next phase of Norway’s upcoming major income source

Kvaerner and Aker Solutions today cut the first steel plate for phase 2 of the Johan Sverdrup offshore field development. After start of oil production starts, this installation will become one of Norway’s most important income sources for the coming decades.

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13 December 2018 – Kvaerner and Aker Solutions today cut the first steel plate for phase 2 of the Johan Sverdrup offshore field development. After start of oil production starts, this installation will become one of Norway’s most important income sources for the coming decades. The Johan Sverdrup development, including phase 1 and phase 2, is already one of the largest current industry projects in Europe with approximately 150 000 man-years involved in developing the various installations.    

The big Johan Sverdrup field is located around 160 kilometres west of Stavanger, and Kvaerner is one of the suppliers that have won the most contracts for the project. For phase 2 of the project, the contract for Kvaerner in a 50/50 partnership with Aker Solutions includes engineering, procurement and construction of a 5 000 tonnes module with new systems. The total contract value is NOK 3.4 billion and also includes modification work on the field centre, plus offshore installation and integration work in connection with phase 2 of the field development. The construction of the module will be conducted by Kvaerner at the company’s facility at Stord, Norway. The project is scheduled for completion in 2022.  

At Stord today, first steel will be cut for the second phase of the facility that will become one of Norway’s biggest sources of incomes in the coming decades. The very first steel plate to be cut will be utilised at a bridge support module which will be positioned where a new bridge is connected to the existing riser platform at the Johan Sverdrup development.

“Phase 2 of Johan Sverdrup is realised through solid cooperation between Equinor and the Norwegian supplier industry to reduce field development costs significantly. This means even higher value creation for Norway, both through industrial development and employment throughout the country, and it includes significant income from future production of oil and gas,” says Karl-Petter Løken, CEO in Kvaerner.

For Kvaerner, the peak manning on the project will be around 550 people and a further 300 in Aker Solutions. Including subcontractors, service companies, etc., the contract is expected to create ripple effects for around 2 000 jobs.

The sections of the Johan Sverdrup field that are built in phase 1 will start production in 2019, while the sections in phase 2 will have production start-up in 2022. Phase 1 includes four platform topsides on steel jackets, where Kvaerner is the supplier of one topside and three steel jacket substructures. Phase 2 includes a new platform topside on a steel substructure, including the new module that Kvaerner will deliver in cooperation with Aker Solutions. Kvaerner will also supply the steel jacket that will carry the new phase 2 processing platform topside.

“Johan Sverdrup is not only Kvaerner’s most important project in recent years, it is also Norway’s biggest industry project in recent times. Kvaerner is a very proud contributor towards safe and reliable execution of this giant project, plus the enormous ripple effects and values it creates throughout the entire country,” says Karl-Petter Løken.

Construction begins when the first steel plate is cut on Thursday 13 December at 10:30 am.  

The major of Stord, Gaute Straume Epland, will be present along with Equinor’s project director, Trond Stokka Meling; Kvaerner’s executive vice president of Process Solutions, Elly Bjerknes; Walter Gifstad, director in Aker Solutions; and Steinar Røgenes, executive vice president and head of Kvaerner’s facility at Stord.

ENDS

For further information, please contact:

Media:

Odd Naustdal, Head of communications West Norway, Kvaerner, Tel: +47 905 76 079, email: odd.naustdal@kvaerner.com

Investors:

Torbjørn Andersen, VP Investor Relations & Communications, Kvaerner, Tel: +47 928 85 542, email: torbjorn.andersen@kvaerner.com