Statoil Adds New Supplier For Giant North Sea Oil Project

By Kjetil Malkenes Hovland

OSLO-Norway's Statoil ASA (STO) said Friday it had awarded a NOK1.3 billion ($160.49 million) contract to FMC Technologies for new and more cost-effective subsea equipment for the giant Johan Sverdrup oil field in the North Sea where development work is gathering pace.

Johan Sverdrup is the largest oil find off Norway since the 1980s, and is estimated to hold up to 2.4 billion barrels of crude in the field's first phase. The $14 billion development is one of the biggest industrial projects in Norway in decades.

Statoil has awarded a string of contracts in recent weeks, including a deal with Kvaerner ASA (KVAER.OS) for steel bases for the field's drilling platform, a deal with Zurich-based ABB Ltd. for electricity cables to the mainland, and a deal with Norway's IKM Ocean Design AS for gas-export equipment.

The deal with FMC is for 13 subsea trees and well heads, used to monitor and control oil wells on the seafloor. The agreement includes options for further deliveries. Statoil said the award was based on a new standard in subsea trees.

"FMC Technologies has been awarded these contracts in a context of competition and an obvious need for considerable and sustained cost improvements," said Statoil senior vice president Torger Rød.

Statoil, 67%-owned by the Norwegian state, has so far awarded contracts worth more than $5 billion for the Johan Sverdrup project.

Statoil is operator of Johan Sverdrup with a 40% stake. Lundin Petroleum AB (LUPE.SK) has a 22.6% stake, Petoro 17.4%, Det norske oljeselskap ASA (DETNOR.OS) 11.6% and the oil arm of A.P. Moeller Marsk A/S (MAERSK-B.KO) has 8.4%.

Write to Kjetil Malkenes Hovland at [e-mail]

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September 18, 2015 04:24 ET (08:24 GMT)

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