FOREBUPORTEN, Norway – Kvaerner has issued an update on its construction programs for two major projects in the North Sea and another offshore eastern Canada. The company also commented on the current economic climate as well as its outlook for 2017 and beyond.
Fabrication has started for the Johan Sverdrup utilities and living quarters platform.
In addition, Kvaerner has engineering, procurement, and construction contracts for three steel jacket substructures. Prefabrication for the riser platform jacket is underway at sub-supplier Dubai Drydocks and at Kvaerner’s own yard in Verdal.
Roll-up of the sections has been progressing through the past quarter.
For the production platform and drilling platform jackets, steel cutting started in 2Q, while prefabrication of sections is among the main priorities for the coming period.
Kvaerner has a frame agreement with Statoil for the possible full upgrade of the Njord A floating production platform.
As a call-off of this contract, Statoil has booked a yard-stay at Kvaerner’s Stord facility when the platform is towed from the offshore field location to shore. Kvaerner is currently making preparations for receiving the platform.
In addition, the gravity based structure for Chevron’s Hebron project offshore Newfoundland is in the final year of construction, in preparation for mating with the platform’s topsides.
During 2Q, the major construction activity was completion of the civil works and mechanical outfitting in the structure’s center shaft.
Kvaerner added that various oil companies have suggested that they expect the oil price to rise and that this may trigger the start of new projects, although it remains difficult to assess timing of possible new investments and the type of development solutions customers may decide on.
This situation continues to create uncertainty for the company’s activity level in 2017 and beyond.
However, the industry’s drive for further cost reductions will continue. Signs are emerging that customers are increasingly focused on which contractor can offer the best total price, and not only the lowest initial bid, Kvaerner said.