Kvaerner wins Sverdrup jacket number four

31 October 2018 – Today, Kvaerner signs a 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.

Attachments/downloads

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.

The new delivery includes engineering, procurement and fabrication. 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.

Today’s 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.

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.

END

For further information, please contact:
Investor Relations: Torbjørn Andersen,
VP Investor Relations & Communications, Kvaerner, Mob: +47 928 85 542

Media: Tove Strand Trana, Head of Communications Mid Norway, Kvaerner, Mob: +47 46401103

About Kvaerner:

Kvaerner is a leading provider of engineering, procurement and construction (EPC) services, and delivers offshore installations and onshore around the world. Kværner ASA, through its subsidiaries and affiliates ("Kvaerner"), is an international contractor and preferred partner for oil and gas operators and other engineering and fabrication contractors. Kvaerner and its approximately 2 700 HSSE-focused and experienced employees are recognised for delivering some of the world's most amazing and demanding projects.

In 2017, Kvaerner's Field Development segment had consolidated annual revenues of NOK 7.6 billion and the company reported an order backlog at 30 September 2018 of NOK 10.6 billion. Kvaerner is publicly listed with the ticker "KVAER" at the Oslo Stock Exchange. For further information, please visit www.kvaerner.com.

To subscribe or unsubscribe to our press releases, please see our web page: http://www.kvaerner.com/subscribe

 

Facts about the steel substructure for the process platform (P2):

Contract:               EPC
Height:                  140 metres
Weight:                 Approx 12 300 tonnes
Top elevation:       28 m x 72 m
Bottom elevation:  49.4 m x 62 m
Piles:                    16