The EPCI contract continues Subsea 7’s support of the Johan Sverdrup project
Norway’s Equinor has awarded an engineering, procurement, construction and installation (EPCI) contract valued between US$150M and US$300M to Subsea 7 for phase 2 of Johan Sverdrup project, one of the largest oil fields on the Norwegian Continental Shelf.
Located in the North Sea, 160 km west of Stavanger, Norway, Johan Sverdrup is estimated to have resources of between 2.1Bn and 3.1Bn barrels of oil equivalents. Production from phase 1 starting November 2019 is estimated at 440,000 barrels of oil per day.
Under the EPCI contract for Phase 2, Subsea 7 will be responsible for approximately 100 km of rigid pipelines, including 40 km of pipe-in-pipe flowlines, 27 km of water injection and 37 km of gas injection pipelines. The marine operations scope includes installing 23 km of umbilicals, tie-in spools and precommissioning.
Project management and engineering is being handled by Subsea 7’s offices in Stavanger, Norway. Fabrication will take place at Subsea 7’s spoolbase at Vigra, Norway and offshore operations will be carried out in 2021 using offshore support vessels including a diving vessel and a reel-lay vessel specially designed to deliver innovative flowline technologies that address long-distance and more complex tie-back developments.
Subsea 7 vice president Norway Monica Bjørkmann said, “This award continues our long-standing collaborative relationship with Equinor and draws upon Subsea 7’s substantial experience in delivering SURF solutions reliably, safely and sustainably.”
One of Norway’s largest industrial projects, phase 1 of the Johan Sverdrup covered developing an accommodation and utility platform, processing platform, drilling platform, riser platform, three subsea installations for water injection, power from shore, export pipelines for oil to the Mongstad refinery and gas for Kårstø processing plant. Phase 1 is 90% complete, reported Equinor. In phase 1, Subsea 7 delivered and installed several subsea components and tied in pipelines at the field.
Phase 2 of the Johan Sverdrup development was approved by Norwegian authorities in May. Start-up of phase 2 is scheduled for Q4 2022.
Licensees for the Johan Sverdrup project are Equinor with a 40.0% stake as operator, Lundin Norway with a 22.6% interest, Petoro 17.4%, Aker BP 11.6% and Total 8.4%.