Kvaerner has bagged a contract worth around NOK900m ($106.9m) from Equinor for a steel substructure for the processing platform of Johan Sverdrup phase 2 development in the Norwegian North Sea.

Johan Sverdrup field

Image: The Johan Sverdrup field in the North Sea. Photo: courtesy of Bo B Randulff / Roar Lindefjeld / Woldcam.

As per the contract terms, Kvaerner will be handling the engineering, procurement and fabrication of the steel jacket for what will be the second processing platform for the Johan Sverdrup field.

The contract will mark the delivery of a fourth substructure from Kvaerner for the overall Johan Sverdrup field development.

Kvaerner president & CEO Karl-Petter Løken said: “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.”

As part of the new contract, the Norwegian engineering and construction services company will also carry out load-out and sea-fastening of the complete steel jacket substructure on a barge prior to its delivery to the North Sea field.

Kvaerner will deliver the steel jacket substructure from its facility in Verdal, Norway during spring 2021. It expects 300 employees to work on the jacket between September 2019 and May 2020, which will be the peak period for the project.

The company will undertake the engineering work at its offices in Oslo with immediate effect and expects to begin the prefabrication work early in the summer of 2019.

The steel jacket to be delivered is expected to weigh a little over 12,300 tonnes.

Equinor procurement and supplier relations senior vice president Peggy Krantz-Underland said: “As one of the main suppliers to Johan Sverdrup, Kværner has contributed with several significant high-quality deliveries, on time and budget. And now Kværner has once again won a contract in strong international competition.”

Equinor and its partners are expected to invest NOK41bn ($4.92bn) in the Johan Sverdrup phase 2 development, which is due to begin production in the fourth quarter of 2022.

Earlier this month, the partners inaugurated a power-from-shore solution that has been designed to provide electricity to the Johan Sverdrup project for more than 50 years.