Statoil Adds New Supplier For Giant North Sea Oil Project
September 18 2015 - 04:39AM
Dow Jones News
By Kjetil Malkenes Hovland
OSLO-Norway's Statoil ASA (STO) said Friday it had awarded a
NOK1.3 billion ($160.49 million) contract to FMC Technologies for
new and more cost-effective subsea equipment for the giant Johan
Sverdrup oil field in the North Sea where development work is
gathering pace.
Johan Sverdrup is the largest oil find off Norway since the
1980s, and is estimated to hold up to 2.4 billion barrels of crude
in the field's first phase. The $14 billion development is one of
the biggest industrial projects in Norway in decades.
Statoil has awarded a string of contracts in recent weeks,
including a deal with Kvaerner ASA (KVAER.OS) for steel bases for
the field's drilling platform, a deal with Zurich-based ABB Ltd.
for electricity cables to the mainland, and a deal with Norway's
IKM Ocean Design AS for gas-export equipment.
The deal with FMC is for 13 subsea trees and well heads, used to
monitor and control oil wells on the seafloor. The agreement
includes options for further deliveries. Statoil said the award was
based on a new standard in subsea trees.
"FMC Technologies has been awarded these contracts in a context
of competition and an obvious need for considerable and sustained
cost improvements," said Statoil senior vice president Torger
Rød.
Statoil, 67%-owned by the Norwegian state, has so far awarded
contracts worth more than $5 billion for the Johan Sverdrup
project.
Statoil is operator of Johan Sverdrup with a 40% stake. Lundin
Petroleum AB (LUPE.SK) has a 22.6% stake, Petoro 17.4%, Det norske
oljeselskap ASA (DETNOR.OS) 11.6% and the oil arm of A.P. Moeller
Marsk A/S (MAERSK-B.KO) has 8.4%.
Write to Kjetil Malkenes Hovland at
kjetilmalkenes.hovland@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 18, 2015 04:24 ET (08:24 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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