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Kvaerner nets key Njord A topsides job
In a welcome development for a struggling Norwegian oil and gas industry, Kvaerner has been awarded a contract for a complete upgrade of Statoil's Njord A platform, including the topsides and hull.
Statoil and partners in March formally approved the Njord Future and Bauge projects in the Norwegian Sea, which includes the Nkr5 billion ($589 million) contract to upgrade the hull and topsides on the semi-submersible platform.
"This is one of the most important contracts in the market this year,” says Kvaerner chief executive Jan Arve Haugan.
Kvaerner has a decades-long history with Njord A, having delivered the platform in 1997. The topside was fabricated at what today is Kvaerner at Stord, while the hull was fabricated at the present Kvaerner in Verdal.
"Although we know the Njord platform well from the time when we constructed it, this is an untypical project, as it is an upgrade job involving removal of old equipment and materials in parallel with fabricating and installing new ones,” Haugan says.
The platform has been anchored at the Stord yard last year pending a final investment decision by Statoil and its Njord partners Dea, Engie E&P, Faroe Petroleum and VNG.
Kvaerner expects to deliver the refurbished platform in the spring of 2020.
Aker Solutions will receive a reported Nkr1 billion of the package as an engineering subcontractor.
"We expect a very high percentage of Norwegian value creation in the project, probably more than 95%,” Haugan says.
“With exception of some procurement, this is likely to be a complete Norwegian project, with high activity in Hordaland and other parts of western Norway, which have been hit by the downturn in the oil industry over the last years.”