Norwegian major Statoil ASA STO awarded a contract on behalf of the Johan Sverdrup partnership to Kværner Verdal for supply of steel jackets for the Johan Sverdrup drilling platform.
The contract follows a letter of intent inked by Statoil and Kværner for the delivery of two jackets for Johan Sverdrup. The letter emphasized on the need for the partners to work together in order to realize further improvements through standardization and simplification.
The 22,500-ton drilling platform jacket is expected to be the second-largest of its kind to be built during the first phase of the Johan Sverdrup project. It is scheduled for delivery and installation on the Johan Sverdrup field in spring 2018.
Project activity at Johan Sverdrup is expected to accelerate significantly going ahead as for the company progresses on its development. Several main contracts and equipment packages, worth over NOK43 billion, have already been granted, and more are expected to be signed in autumn this year.
The first phase is projected to cost investments worth about NOK117 billion (2015 value). Recoverable resources are estimated in the range of 1.4–2.4 billion barrels of oil equivalent.
This phase comprises four installations, which includes a utility and living quarters platform, a processing platform, a drilling platform and a riser platform, all interlinked by gangways, in addition to three subsea water injection templates. Recovery rate of the Johan Sverdrup project is targeted at 70%.
Statoil operates the Johan Sverdrup field with a holding of 40.03%. Other partners are Lundin Norway, Petoro, Detnorskeoljeselskap and Maersk Oil holding 22.6%, 17.36%, 11.57% and 8.44%, respectively.
Statoil carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are Alon USA Partners, LP ALDW, Braskem S.A. BAK and ReneSola Ltd SOL. All these stocks sport a Zacks Rank #1 (Strong Buy).
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