Kvaerner Wins USD 1.4 bln EPC Contract for Edvard Grieg Topside (Norway)

Kvaerner has received a letter of intent from Lundin Norway AS for engineering, procurement and construction (EPC) of the topside for the Edvard Grieg platform (formerly Luno). The estimated contract value is approximately NOK 8 billion (USD 1.4 billion), excluding options in the contract for offshore hook up and commissioning assistance. Most of the scope will be performed in Norway.

“We are extremely proud to have won our second contract for Lundin’s new platform on the Norwegian Continental Shelf and believe that this confirms our position as a leading provider of complex, integrated topsides,” says Jan Arve Haugan, President & CEO of Kvaerner.

The topside has a total weight of 21 000 tonnes and consists of a main topside module, a combined living quarter and utility module, a process module and a flare tower.

As announced in January, Kvaerner will also deliver the steel jacket for the Edvard Grieg platform under a separate EPC contract. The jacket weighs 14 500 tonnes and will be delivered from Kvaerner’s specialized jacket yard in Verdal in the spring of 2014, approximately one year before the topside is due to be delivered.

Strong project execution model

“We offer a strong project execution model and we are committed to deliver the Edvard Grieg platform with the specified quality and on schedule,” says Lars Eide, Executive Vice President in Kvaerner, responsible for topsides in the North Sea market.

The project will be executed with project management, engineering, fabrication and assembly from Kvaerner. In addition, several of Kvaerner’s key partners in the North Sea market will contribute in delivering the Edvard Grieg topside.

Design engineering and technical procurement will be performed by Aker Solutions in Oslo and Mumbai, managed by Kvaerner. Fabrication and assembly of the process module will be conducted by Aker Solutions yard in Egersund, while the main topside module and the utility module will be assembled at Stord.

The living quarter has been sub-contracted to Apply Leirvik AS. Once complete, the modules will be placed on the jacket through four individual offshore lifts.

Detail engineering will begin imminently, while fabrication is expected to commence in 2013 and final delivery is set to April 2015. The project will reach its peak manpower of more than 1 650 persons in 2014.

First production in 2015

The Edvard Grieg field is an oil field located in the North Sea. First production is expected in late 2015, with a forecast gross peak production of approximately 90 000 barrels of oil per day (bopd). The oil will be processed and transported in a new pipeline to the Grane area and further via the Grane oil pipeline to the Sture terminal for offloading. Lundin Norway AS is the operator and has a 50 percent working interest in the Edvard Grieg field. Wintershall and RWE Dea hold a 30 per cent and a 20 percent interest, respectively.

The facilities on the Edvard Grieg platform will be prepared for power from shore when capacity and technical solutions are available in order to contribute to the development of a long term electrification of the area. The platform will be Lundin Petroleum’s biggest ever, and their first on the Norwegian Continental Shelf.

Contract partner for the topside is Kvaerner subsidiary Kværner Stord AS.

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Source: Kvaerner, May 3, 2012