Subsea 7 awarded Johan Castberg job

January 24, 2018

Global subsea contractor Subsea 7 has been awarded a sizeable contract from Statoil for the Johan Castberg field development, located 240 km from Hammerfest in Norway.

Subsea 7 defines a sizeable contract as being between $50 million and $150 million.

The company said on Wednesday that the contract comprises the design, coating, fabrication and installation of a 53 km rigid flowline including 34 km of pipe-in-pipe flowline.

Project management and engineering will start immediately at Subsea 7’s offices in Stavanger, Norway.

Fabrication will take place at Subsea 7’s spoolbase at Vigra, Norway and offshore operations will be carried out in 2020.

The Johan Castberg (formerly Skrugard) field is situated approximately 100 kilometers north of the Snøhvit-field in the Barents Sea.

Statoil submitted the plan for development and operation of the Johan Castberg project to Norwegian authorities in early December 2017. The field development concept includes an FPSO and a subsea development with a total of 30 wells, 10 subsea templates and two satellite structures.

Singapore’s Sembcorp Marine has already secured a contract to build the hull for the Johan Castberg FPSO and Aker Solution has recently won an order to supply the subsea production system and design the topside of the FPSO unit.

Phil Simons, Subsea 7’s Vice President North Sea and Canada, said, “We are pleased to have been awarded this key project by Statoil and to be part of the further development of the oil and gas infrastructure in the Barents Sea, delivering regional content in the North of Norway. This award draws upon Subsea 7’s substantial experience in safely and effectively delivering rigid pipelay projects.”

The Johan Castberg development costs are estimated at around NOK 49 billion. Recoverable resources are estimated at 450 – 650 million barrels of oil equivalent. First oil is scheduled for 2022.