NORWEGIAN engineering firm Kvaerner has completed construction of a 22,000 tonne topside for an offshore platform being built for the Edvard Grieg field, operated by Lundin Petroleum.
While neither party put a price on the topside itself, the contract award, made in May 2012, valued the capital cost of the entire Edvard Grieg development at US$4 billion.
The topside consists of a main deck module, a combined utility module and living quarters, a process module and a flare tower.
At the time Oil & Gas Australia went to press, the main deck module and the combined utility module and living quarters had both been moved to barges at Stord, ready for tow-out to the field.
The process module is also ready on a barge at Aker Solutions in Egersund, Norway, and the flare tower is completed and ready for delivery directly offshore from the subcontractor in Poland.
The modules for the topside will be towed to field and lifted in place on top of the steel jacket in three separate lifts.
Kvaerner will assist Lundin with offshore hook up and completion during the Northern summer and into autumn before production starts, estimated to be in the fourth quarter of 2015.
Oil produced from the field, which is expected to reach a peak rate of 100 000 barrels a day, will be processed and transported through a new pipeline to the Grane field and further via Grane’s piping to the Sture terminal.
Kvaerner chief executive Jan Arve Haugan said the project had been a demanding one, but the group had met all the necessary milestones.
“The topside is not only delivered on time but also to agreed quality and exceptionally little outstanding work,” he said
Lundin Norway AS is operator and owns 50 per cent of the license. The other partners are Wintershall Norway with 15%, OMV Norway with 20% and Statoil with 15%.
The delivery comes after Kvaerner announced it had lost the Statoil contract for delivery of the Johan Sverdrup drilling topside to Aibel.
“This was a job that Kvaerner had strong ambitions to win. The company will now utilise learnings from this tender loss to implement further cost reductions in parallel with positioning for other contract opportunities,” Kvaerner said in a February announcement.
Mr Haugan said that while disappointing, the loss of the tender was an illustration of how intense the competition for every contract is.
“We take this as a signal to not only step up the cost reduction measures in Kvaerner but we will also evaluate if we have to change our execution model and increase the use of subcontractors,” he said.