Report: Daewoo beating Samsung, Hyundai in Johan Castberg FPSO race?

South Korea’s Daewoo Shipbuilding Marine & Engineering is reportedly on the verge of bagging a contract to build components for Statoil’s Johan Castberg FPSO.

According to Business Korea website, DSME, subject to the signing of the contract, will build the hull and the living quarters of the FPSO destined to be deployed in the Barents Sea, offshore Norway.

Business Korea reports that apart from DSME, the other two of South Korea’s shipbuilding behemoths Samsung and Hyundai, are also taking part in the tender, but they’ve reportedly been outbid by DSME.

The website claims that DSME has offered $575 million price to build the hull and the LQ, while Samsung and Hyundai have offered $595 million and $600 million, respectively. The contract for the topside will be awarded separately in the first half of 2018, the website reported.

However wins it, one thing is certain, the FPSO will be deployed at the Johan Castberg field (formerly Skrugard) situated about 240 kilometers north-west of Hammerfest, and 100 kilometers north of the Snøhvit field in the Barents Sea.

Johan Castberg consists of the three discoveries Skrugard, Havis and Drivis, proven in 2011 to 2013 in Lower to Middle Jurassic sandstone. The discoveries, containing around 450 – 650 million barrels of oil, are planned to be developed together.

Statoil has yet to submit a development plan to the Norwegian authorities but it’s been known that the company is working on a concept to develop the field using an FPSO. A final investment decision for the Johan Castberg is to be made towards the end of 2017.

Offshore Energy Today has reached out to Statoil asking for more info on the project progress and on the FPSO contract news.

A Statoil spokesperson said:”We are in a tender process on the Johan Castberg contracts and we will not comment on the media speculations. Investment decision is still planned for 2017. Updated CAPEX numbers for the development will be published when the Johan Castberg partners sanction the project.”

Offshore Energy Today Staff