Oil and gas industry news : TechnipFMC has bagged a subsea contract from Equinor for the $4.83 billion Johan Sverdrup Phase 2 project in the Norwegian waters of the North Sea.

Johan Sverdrup Phase 2 project contract

As per the contract terms, TechnipFMC will handle the construction and installation of Johan Sverdrup Phase 2’s subsea production system. The UK-based company did not reveal the exact contract value but said that it is in the $75-250 million range

TechnipFMC’s work on the Johan Sverdrup Phase 2 project will see the supply and installation of the subsea production system that includes integrated template structures, tie-in, manifolds and controls equipment.

Phase 2 of the Johan Sverdrup development will feature five templates and 18 X-mas trees with associated components as part of its production system.

Equinor and its partners Aker BP, Lundin Norway, Total and Petoro are targeting to commence production from the Johan Sverdrup Phase 2 project in Q4 2022. Ahead of that, the Johan Sverdrup Phase 1 project is slated to be brought on stream this November.

Commenting on the Johan Sverdrup Phase 2 contract, Arnaud Pieton – President Subsea at TechnipFMC, said: “We have collaborated closely with Equinor establishing a Strategic Collaboration Agreement in 2018. This joint engagement is leading to further value creation for both of us and for Equinor’s Johan Sverdrup Phase 2 Development. It reaches beyond the supply of subsea equipment, now encompassing its installation. We are very proud of this joint engagement and very pleased to work alongside Equinor for the Johan Sverdrup Phase 2 development.”

As per estimates, Johan Sverdrup, which is one of the five largest oil fields on the Norwegian Continental Shelf, contains 2.7 billion barrels of oil equivalent of recoverable resources.

While the Johan Sverdrup Phase 1 project is expected to yield 440,000 barrels of oil per day, the Johan Sverdrup Phase 2 project is designed to achieve full field production of 660,000 barrels of oil a day.

Trond Bokn – Johan Sverdrup development senior vice president, on the Johan Sverdrup Phase 2 contract, commented: “This is an important milestone for the Johan Sverdrup development. We have now determined the subsea solution for both phase 1 and 2 of the field development, and TechnipFMC has been given the responsibility for both jobs. This gives us a good starting point for accelerating the collaboration on safety, efficiency improvement, simplification and technology development. Close collaboration in the execution phase lays the foundation for achieving good solutions and further simplifications in the operating phase.”

  Aker BP, Arnaud Pieton, Equinor, Johan Sverdrup Phase 2 project, Lundin Norway, North Sea, Norway, Oil and gas industry news, Oil and gas news, Petoro, TechnipFMC, Total, Trond Bokn