Norwegian oil services firm Kvaerner announced a $1.5 billion contract with ExxonMobil Canada Properties, a unit of Exxon Mobil Corporation (NYSE:XOM). The contract includes the option for Kvaerner joint company Kiewit-Kvaerner Contractors to provide engineering, procurement and construction (EPC) services for the Hebron oil project's gravity based structure in the Atlantic Ocean, Kvaerner said.
"We are very pleased that Kiewit-Kvaerner Contractors has been selected to deliver the Hebron GBS," says Bjørn Gundersen, executive vice president in Kvaerner. "This is a strategically important project for us and we believe it confirms our strong position within arctic technologies in general and gravity based structures (GBS) in particular."
The contract was awarded after the completion of the concept development for the project as well as fulfilling the site preparation contract which was awarded in November 2010 and authorized for EPC services in April 2012, Kvaerner said.
The project will be located offshore the Canadian province of Newfoundland and Labrador, with engineering work taking place in St. John's. The Bull Arm fabrication yard, located near St. John's, will serve as the preparation site for construction of the GBS. After the structure is completed it will be installed at the Hebron oil field on the Grand Banks in the Atlantic Ocean, approximately 217 offshore St. John's, Newfoundland and Labrador, Canada.
According to Kvaerner, the company expects oil production to begin by the end of 2017.