On behalf of the Johan Sverdrup licence, Equinor is awarding the contract for subsea pipelines and associated marine operations in the second project phase to Subsea 7. This will increase the share of contracts awarded to Norwegian suppliers in phase 2 of the Johan Sverdrup project to 85%.
“Demonstrating competitiveness and a strong ability to improve during the past years, Norwegian suppliers have secured as much as 70% of the contracts in the first phase of the Johan Sverdrup development. Today’s contract award increases the Norwegian share in phase 2 to 85%,” says Peggy Krantz-Underland, Equinor’s chief procurement officer.
The first phase of the Johan Sverdrup development is nearly 90% completed, with expected production start in November. In phase 1, Subsea 7 was responsible for delivery and installation of several subsea components and tie-in of pipelines at the field.
In the second project phase Subsea 7 is awarded the contract for delivery and installation of around 100 kilometres of infield pipelines and 25 spools, installation of umbilicals and marine operations associated with the subsea scope.
“Subsea 7 is awarded the last major subsea contract for Johan Sverdrup phase 2. Based on good experiences and learning from phase one, the award will ensure continuity and a coherent development of the entire Johan Sverdrup field. This will give us a good foundation for enhancing our collaboration on safety, efficiency and further improvements in the execution phase and afterwards in the operating phase,” says Trond Bokn, project director for the Johan Sverdrup development.
Subsea 7 describes the value of the contract as “substantial”, defined to be in the range of USD 150-300 million.
Johan Sverdrup is regarded as Norway’s biggest industrial project in modern history. The Agenda Kaupang consulting company estimates that the Johan Sverdrup project may provide more than 150,000 man-years in Norway in the development period 2015-2025.
Phase 2 of the Johan Sverdrup development was approved by Norwegian authorities in May 2019. Start-up of phase 2 is scheduled for the fourth quarter of 2022.
The Johan Sverdrup licensees are Equinor (operator), Lundin Norway, Petoro, Aker BP and Total.
About Equinor
Equinor, is an international energy company with a proud history. Formerly Statoil, we are 20,000 committed colleagues developing oil, gas, wind and solar energy in more than 30 countries worldwide. We’re the largest operator in Norway, among the world’s largest offshore operators, and a growing force in renewables. Driven by our Nordic urge to explore beyond the horizon, and our dedication to safety, equality and sustainability, we’re building a global business on our values and the energy needs of the future.
About Subsea 7
Subsea 7 is a global leader in the delivery of offshore projects and services for the evolving energy industry.
We create sustainable value by being the industry’s partner and employer of choice in delivering the efficient offshore solutions the world needs.
Subsea 7 has over 11,000+ employees with 80 different nationalities, a fleet of 30+ vessels and an active presence in 33 countries.
We have a strong track record of safe and reliable delivery of projects, with offshore operations spanning five decades and over 1,000 projects successfully delivered.