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Statoil Announces Start of Construction at Johan Sverdrup

Statoil ASA STO announced the start of construction on the Johan Sverdrup utility and living quarter’s platform on the island of Stord, north of Stavanger.

The company had awarded the contract for engineering and construction of the topside for the utility and living quarter’s platform for the Johan Sverdrup field to a joint venture (JV) between Kværner and KBR in Jun 2015.

Stord is crucial for the massive Johan Sverdrup project. Kværner will construct the topside steel frame parts as well as assemble all parts for the utility and living quarters platform. Post completion of construction work, the platform will be installed on the field in 2019. About 2000 Kværner employees will be engaged in Johan Sverdrup deliveries at the height of construction.

The accommodation module for the living quarter’s platform on Stord will be built by Kværner’s sub-supplier, Apply Leirvik. The living quarters on the platform – with a capacity of 560 people – is estimated to be the largest on the Norwegian continental shelf (NCS).

The other modules for the utility and living quarters platform will be fabricated at Energomontaz Polnoc Gdynia (“EPG”), Mostostal Pomorze Gdansk (“MPG”), Mostostal Chojnice and Crist Offshore in Poland as well as in Gothenburg, Sweden.

The other partner in the JV, KBR, is responsible for detailed engineering. The firm has started work at its office in Leatherhead, London, while Apply Leirvik has been conducting the rest in Stord. The construction work has also commenced at two of the yards in Poland and at Apply Leirvik’s yard.

The utility and living quarters platform will provide lodgings to the crew working on the Johan Sverdrup field during the field life of 50 years. The platform will also house the field’s control and emergency centre, and certain utility systems encompassing the whole field centre.

The platform is scheduled to be completed by the first quarter of 2019. The world’s largest heavy-lift vessel, the Pioneering Spirit, will be used to install the platform on the Johan Sverdrup field.

Currently, Statoil carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are ReneSola Ltd. SOL, FutureFuel Corp. FF and Enviva Partners, LP EVA. Each of these stocks sports a Zacks Rank #1 (Strong Buy).

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STATOIL ASA-ADR (STO): Free Stock Analysis Report
 
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