Statoil ASA STO, on behalf of its Johan Sverdrup partners, has awarded total contract valued at about NOK 600 million to Norwegian oil field services company, Aibel. The contract pertains to the construction of the converter station at Haugsneset as well as the required construction site work for land-based power supply to the field.
Per the contract, Aibel will also need to trench and lay down two sets of 300kV alternating-current cables from Kårstø to Haugsneset for both phases of field development.
Access roads have to be constructed. Also, to incorporate the converter stations for both phase 1 and phase 2 a construction site of about 30 decares needs to be prepared. Aibel will be installing the converter equipment, which will be delivered by ABB Norge.
The engineering will be done at the Oslo office. Kårstø will manage the construction site and building work at the construction site office at Haugsneset. The construction site work will be carried out by Veidekke as a sub-supplier to Aibel. The contract for construction of the deck for the drilling platform on Johan Sverdrup has already been awarded to Aibel.
The aforesaid contract is the last of the three main contracts covering the land-based power supply project. Earlier, ABB had received the first contract in Norway to supply high-voltage direct current converter equipment for the riser platform at the field centre and for Haugsneset.
The second contract was given to ABB AB in Sweden to fabricate and set up two 200-kilometer long high-voltage cables from Haugsneset to the Johan Sverdrup field.
The Johan Sverdrup oil field is anticipated to be commissioned by late 2019 and will be operated by land-based power.
The first phase of the Johan Sverdrup field development is also expected to arrange for a land-based power solution for the full development of the Johan Sverdrup field and other fields on the Utsira High by 2022.
Statoil is the operator of the Johan Sverdrup partnership with an interest of 40.03%. Other partners include Lundin Norway, Petoro, Detnorskeoljeselskap and Maersk Oil holding 22.6%, 17.36%, 11.57% and 8.44%, respectively.
Statoil currently carries a Zacks Rank #4 (Hold). Some better-ranked stocks from the same space are Natural Gas Services Group Inc. NGS, Matrix Service Company MTRX and ReneSola Ltd SOL, which sport a Zacks Rank #1 (Strong Buy).
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