ABB signs deal with Statoil for Norway offshore oilfield development


ABB has signed a project-specific agreement to provide safety and automation systems for Statoil at the Johan Castberg oilfield off the coast of Norway. 

Statoil has issued the first call-off from the agreement covering front-end engineering and design (FEED).

ABB oil, gas and chemical business managing director Per Erik Holsten said: “We appreciate to be involved at such an early stage in the project. Together with Statoil, we can immediately develop standard design solutions using our world-class 800xA safety and automation system.

“The innovative approach streamlines project execution, and helps reduce capital expenditure.”

The agreement is the first for the project and includes a right to order the actual system when the final investment decision is taken.

Johan Castberg oilfield hosts proven resources of 450 million to 650 million barrels of oil. The field is estimated to produce oil for a furthe than 30 years.

Holsten stated that ABB will assist by providing its experience in oil and gas production and optimisation. The company has been developing safety and automation systems for more than four decades.

Holsten added: “For offshore fields like Johan Castberg located in the Barents Sea, having state-of-the-art safety and automation systems is absolutely critical.

"The innovative approach streamlines project execution, and helps reduce capital expenditure."

“Possible future condition-based and predictive maintenance, and remote monitoring and operations, may further reduce exposing humans and nature to risks. At the same time, such services may decrease the operational expenditures and increase productivity.”

Currently, ABB engineers are conducting front-end engineering and design (FEED) in collaboration with Statoil.

The FEED is expected to continue until fourth quarter of this year following which the final investment decision will be taken.

ABB has provided safety and automation systems to several onshore and offshore oil and gas facilities above the Arctic Circle in Norway.


Image: ABB to provide safety and automation system at the Johan Castberg oil field. Photo: courtesy of ABB.