Statoil has awarded Aker Solutions a number of contracts to help develop the Johan Castberg field, the largest oil discovery in the Norwegian Barents Sea.
Last week Statoil finally presented a long-awaited investment plans for its Johan Castberg oil discovery, which is expected to cost 49 billion Norwegian crowns (US$5.89 billion) to develop ahead of a 2022 production start-up.
The deal for Aker Solutions will see it supply the subsea production system and design the topside of the floating production, storage and offloading (FPSO) facility. The total value of the work is about NOK 4 billion.
"Our early involvement and strong collaboration with Statoil have helped halve the development costs, enabling this strategically important project to move forward," said Aker Solutions Chief Executive Officer Luis Araujo. "The field is critical in further developing northern Norway as an oil and gas region."
The subsea production system will consist of 30 wells with vertical subsea trees, wellheads, control systems, 10 templates and manifolds, two satellite structures and tooling.
Work on the system will start this month and involve facilities in Norway, the UK, India, Malaysia and Brazil. Initial deliveries are scheduled for the second quarter of 2019 with final delivery in the first half of 2023.
The FPSO agreement covers engineering, procurement and management assistance for the detailed design of the Johan Castberg topside. The order comes after Statoil exercised an option in a 2013 engineering contract for Johan Castberg. The work has already started and will be carried out by Aker Solutions in Norway and India. The detailed design is set to be completed in 2019.
Partners in Castberg, which is believed to hold between 450 million and 650 million barrels of oil equivalents, are Statoil with 50 per cent, Italy’s Eni with 30 per cent and Norway’s state-owned Petoro with 20 per cent.