Letter of award for Johan Sverdrup engineering framework agreement to Aker Solutions
Statoil and partners have awarded Aker Solutions the engineering framework agreement for the Johan Sverdrup field in the North Sea, where the first call off will be the front-end engineering design (FEED) of the field centre.
The Johan Sverdrup field is one of the largest oil discoveries on the Norwegian continental shelf (NCS). With a forecasted production of over 30 years, Johan Sverdrup will create value for owners and society beyond 2050. The oil field is the most important new development on the Norwegian continental shelf, and this is the first FEED contract awarded for the first phase of the development.
The FEED contract has an estimated value of NOK 650 million (current value).
“With today’s letter of award, we mark a new phase for the North Sea area where our history started on the Norwegian continental shelf. The value creation from the Johan Sverdrup field will be significant for the partners and for Norwegian society. In addition it will contribute substantial activity for the oil and gas industry—including the supplier industry,” says Øystein Michelsen, Statoil’s executive vice president for development and production in Norway.
The Johan Sverdrup field development is of a magnitude comparable to the largest NCS offshore developments by establishing a new field centre with four installations and related infrastructure in the first phase.
“The contract for front-end engineering design is the key in securing optimal development of the field and maturing a concept for final investment decision by the partners. We are pleased to have secured capacity with an experienced contractor,” says Michelsen.
Contract award based on strong international competition
The award of the FEED contract to Aker Solutions means an important new contract for the supplier industry.
“Statoil and its partners want competent suppliers which can contribute to safe and efficient operations. We have considered tenders in strong competition in a global market. This contract award is based on an assessment of several factors—such as cost, competence, capacity, quality, HSE and risk sharing suitable for a long-term cooperation,” says Margareth Øvrum, Statoil executive vice president for technology, projects and drilling.
New contract strategy to increase efficiency
The FEED contract is the first award based on a framework agreement with Aker Solutions for the portfolio of platforms on the Johan Sverdrup field in different development stages. The 10-year framework agreement includes options for feasibility and concept studies, FEED and engineering and procurement management (EPma) for future phases.
This is based on a new contracting strategy for Statoil for large-scale field developments, enabling industrialisation and standardisation across future phases to increase efficiency and reduce cost.
“This contract strategy secures early access to key resources, ensures efficiency in the early phase, and a seamless handover from the FEED phase to detailed engineering—thus facilitating efficiency in the execution phase,” says Michelsen.
The project has a high priority among the other licensees—Lundin Norway, Petoro, Det Norske oljeselskap and Maersk Oil. Developing the Johan Sverdrup field will draw on the experience and knowledge of the whole partnership.
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