Statoil has awarded a Nkr3.8bn ($481.34m) contract for delivery of the topside modules for the floating production vessel (FPSO) on the Johan Castberg field in the Barents Sea to engineering and construction services company Kvaerner.

The scope of the contract includes building a total of ten modules, a flare boom, and central pipe rack.

Yards in Sandnessjøen, Verdal, Stord, and Egersund will all be used to carry out the construction work, which is set to last until 2021.

The topside structure will be integrated with the hull and hooked up to the turret.

Statoil chief procurement officer Pål Eitrheim said: “The Johan Castberg development will generate substantial spinoffs for Norwegian supply industry in the years ahead.

“The field is also essential to the further development of industry in northern Norway, and we are pleased that this contract will help increase activities in the north.”

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By GlobalData
“The Johan Castberg development will generate substantial spinoffs for Norwegian supply industry in the years ahead.”

With estimated recoverable resources of 450 million to 650 million barrels of oil equivalent, the field is expected to have a production phase of more than 30 years.

The company expects to incur capital expenditures of Nkr49bn ($6.2bn) for the project, which is projected to generate around 47,000 man-years during the development stage.

The contact is conditional upon the receipt of government approval of the plan for development and operation (PDO).

Meanwhile, Kvaerner has unveiled plans to invest Nkr370m ($46.86m) in a new quay at Stord in order to increase the facility’s quayside by 266m, and extend its construction area to 17,000m².

In a separate move, Statoil has awarded a contract to Siemens for the delivery of the SGT-750 gas turbine-driven compression train for the Johan Castberg FPSO vessel.

The field is expected to come on-stream in the first half of 2022.