Kvaerner and Statoil have established a frame agreement for delivery of steel jacket substructures to Statoil-operated fields. Based on this frame agreement, Statoil has signed a Letter of Intent (LoI) for Kvaerner to deliver two of the planned steel jackets to the Johan Svedrup development. Subject to all necessary approvals for the project to proceed, early estimates of the total value of the two jacket deliveries will be approximately NOK 3 billion.

Johan Svedrup is located at a water depth of 120 meters off the West Coast of Norway Statoil is the operator for the field, and first development phase of the field is to establish infrastructure and a field centre which includes four offshore platforms based on steel jacket substructures which will stand on the seabed.

"It is highly pleasing that Kvaerner has managed to come up with a competitive and forward-looking delivery model. By so doing, Kvaerner has demonstrated that cost-reduction measures and increased efficiency do bear fruit. This is inspiring for us in Statoil. Safe and cost-effective resource utilisation and long-term value creation are our most important tasks," states Statoil CEO Helge Lund.

With the Letter of Intent, Kvaerner will start the preparation work for the delivery of two complete jackets for Johan Svedrup, one for the Riser Platform, and one for the Drilling Platform.

Both deliveries will include engineering, procurement and construction. The engineering will be performed at Kvaerner's offices in Oslo, and will start late 2014. The project management will be based at Kvaerner's specialised jacket-facility in Verdal in Mid-Norway. This is also where the assembly will take place from the first quarter of 2016. The new project will entail work for many people working for Kvaerner's suppliers, and some subcontractors will start pre-fabrication already during the summer of 2015.

The Riser Platform jacket will be delivered in the summer of 2017, while the Drilling Platform jacket will be delivered in the spring of 2018. At peak in second quarter 2017, there will be approximately 350 people working on the project.

Tags: Kvaerner, Statoil