Statoil awards Johan Sverdrup oil and gas pipeline contracts

Source: Statoil

The contracts cover both the oil and the gas export pipelines for Johan Sverdrup.

Statoil has, on behalf of the Johan Sverdrup partners, awarded contracts for the linepipe, coating and pipe installation of the Johan Sverdrup export pipelines.

The total contract value is estimated at slightly less than NOK 2.5 billion, the three contracts cover both the oil and gas export pipelines for Johan Sverdrup.

The linepipe 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 kilometres. Linepipe production will start at Nippon Steel & Sumitomo Metal (NSSMC) 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 pipe-laying contract for the Johan Sverdrup oil and gas export pipelines. The pipe-laying operation is scheduled to start in the spring of 2018, using the laying vessel CastorOne.

“We have selected a solid team of principal suppliers for the Johan Sverdrup export pipelines, and are thus well positioned to deliver first oil from Johan Sverdrup from late 2019,” says Kjetel Digre, senior vice president for the Johan Sverdrup project.

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-kilometre, 36-inch pipeline to the Mongstad terminal, including required modifications at the terminal.

Gas will be exported to Kårstø gas terminal through a new gas pipeline. The gas export solution includes a 156-kilometre, 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 Kårstø 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 have been awarded so far in the Johan Sverdrup project, about 75 percent of which have been landed by suppliers with Norwegian invoice addresses.


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