By Dominic Chopping

Statoil (STO) has awarded Samsung Heavy Industries (010140.SE) a seven billion Norwegian kroner ($888 million) contract to build two platform decks for its giant Johan Sverdrup development in the North Sea, it said Tuesday.

The Norwegian oil and gas major said the contract will see Samsung fabricate the decks for the process and riser platforms, and with this latest deal, contracts for all four of the planned platform decks have now been awarded.

Statoil has previously awarded the deals to build the drilling and accommodation decks to Norwegian companies Aibel and Kvaerner (KVAER.OS) and the company said that 65% of the equipment contracts so far have been awarded to suppliers with Norwegian billing addresses.

"Samsung has extensive experience in manufacturing such installations and we already have a good collaboration with the supplier," Statoil Executive Vice President Margareth Ovrum said. "They have provided a competitive bid in a tough international competition."

The total investment costs for phase one of the Johan Sverdrup development are estimated at NOK117 billion and include installing the accommodation, processing, drilling and riser platforms as well as three subsea templates. Production is expected towards the end of 2019.

The Johan Sverdrup partnership consists of Statoil, Lundin Norway, Petoro, Det norske oljeselskap and Maersk Oil.

Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter: @WSJNordics

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