Wednesday, July 2, 2014

Kvaerner Wins $490 Million Statoil Deal for Sverdrup Platforms

By Stephen Treloar


Kvaerner ASA (KVAER), a Norwegian oil platform builder controlled by billionaire Kjell Inge Roekke, won a 3 billion-krone ($490 million) contract to supply two platforms structures for Statoil ASA (STL)’s Johan Sverdrup find.
Kvaerner signed a letter of intent for the delivery of two steel jackets for the field in the North Sea and entered a frame agreement for further units up until 2020, the Oslo-based company said in a statement today.
Sverdrup “is an industrial development with a 50-year perspective,” Statoil Chief Executive OfficerHelge Lund said in the statement. “This letter of intent signifies a fresh step forward in planning the first phase of Johan Sverdrup.”
The discovery of Sverdrup in two parts by Lundin Petroleum AB (LUPE) and Statoil ASA in 2010 and 2011 renewed explorers’ interest in Norway after a decade of falling oil production. The field, which holds 1.8 billion to 2.9 billion barrels of oil equivalent, will bolster the order books of suppliers even as oil and gas investments in the country decline.
The planned development of the discovery was put in danger this year amid wrangling in parliament over electrification of surrounding fields on the Utsira High area. The government and the opposition later reached an accord to start electrification of three North Sea oil fields by 2022 to avoid potential delays to the country’s biggest offshore development in decades.
“This agreement also shows that it was extremely important to avoid a solution in parliament about land-based power to the Utsira High that would have resulted in delays of Sverdrup’s first construction phase,” Oil & Energy Minister Tord Lien said in a statement.
Aker Solutions ASA (AKSO), another company controlled by Roekke’s Aker ASA, last year won a framework contract on engineering design from Statoil on Sverdrup. The Roekke-controlled explorerDet Norske Oljeselskap ASA (DETNOR) also owns part of Sverdrup.
Culled from http://www.bloomberg.com/

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