Equinor has awarded a contract to Subsea 7 for subsea pipelines and associated marine operations for the Johan Sverdrup phase 2 project located in the North Sea, 160km west from Stavanger in Norway.
Under the contract, Subsea 7 will be responsible for project management, engineering, procurement, construction and installation of 40km of pipe-in-pipe flowlines, 27km of water injection and 37km of gas injection pipelines.
The Marine Operations scope under the contract includes the installation of 23km of umbilicals, tie-in spools and precommissioning.
Subsea 7 said it will immediately commence project management and engineering at its offices in Stavanger, Norway.
Equinor chief procurement officer Peggy Krantz-Underland said: “Demonstrating competitiveness and a strong ability to improve during the past years, Norwegian suppliers have secured as much as 70% of the contracts in the first phase of the Johan Sverdrup development. Today’s contract award increases the Norwegian share in phase 2 to 85%.”
Subsea 7 will carryout fabrication work at its spoolbase at Vigra, Norway and undertake offshore operations in 2021 using a number of vessels.
Subsea 7 Norway vice-president 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.”
The Johan Sverdrup’s first phase of the development is nearly 90% complete and is planned to commence production in November 2019.
For the phase 1 of Johan Sverdrup, Subsea 7 was responsible for delivery and installation of several subsea components and tie-in of pipelines at the field.
Johan Sverdrup phase 2 project will commence production in 2022
The phase 2 of the Johan Sverdrup development, which was approved by Norwegian authorities in May 2019, is scheduled to commence production in the fourth quarter of 2022.
The phase 2 project is expected to provide an additional production capacity of 220,000 barrels of oil per day from the offshore Norwegian field.
Equinor operates the Johan Sverdrup field with 40.0267% stake while other partners include Lundin Norway with 22.6% interest, Petoro with 17.36% stake, Aker BP with 11.5733% interest and Total with 8.44% stake.
