The total contract value is estimated at slightly less than NOK 2.5 billion (US$0.29 billion). The three contracts cover both the oil and gas export pipelines for Johan Sverdrup, located in the North Sea, approximately 140 km west of Stavanger, Norway.
Line pipe fabrication
The line pipe fabrication contract for the export pipelines was awarded to Mitsui & Co. Norway A.S. Mitsui will deliver 220,000 tonnes of steel for the oil and gas pipelines, totalling 430 km. Line pipe production will start at Nippon Steel & Sumitomo Metal steelworks in Japan early in 2016.
Wasco Coatings Malaysia Sdn Bhd was awarded the contract for external anti-corrosion treatment and concrete weight coating for the oil and gas pipelines, as well as internal flow coating for the gas pipeline. The work will be performed at Wasco’s factory in Malaysia in 2017.
Saipem Ltd has been awarded the pipelaying contract for the oil and gas export pipelines. The pipelaying operation is scheduled to start in the spring of 2018, using the laying vessel CastorOne.
Senior Vice President for the Johan Sverdrup project Kjetel Digre said delivery of first oil from Johan Sverdrup is anticipated from late 2019.
Stabilised oil will be exported to the Mongstad terminal through a new oil pipeline connected to existing storage caverns. The oil export solution consists of a 274 km, 36 inch pipeline to the Mongstad terminal, including required modifications at the terminal.
Gas will be exported to KÌ´rstÌü gas terminal through a new gas pipeline. The gas export solution includes a 156 km, 18 inch pipeline tied in to the Statpipe rich gas pipeline, including a hot-tap hook-up to this pipeline. No modifications are required at KÌ´rstÌü for the reception of the Johan Sverdrup gas.
The oil and gas export development will meet the transportation needs for all phases of the Johan Sverdrup development.
Contracts worth more than NOK 50 billion (US$5.7 billion) have been awarded so far in the Johan Sverdrup project, about 75 per cent of which have been landed by Norwegian suppliers.