Kvaerner ASA

Kvaerner to upgrade the Njord platform

17 March 2017 - Statoil has awarded Kvaerner the contract for complete upgrade of the Njord A platform. The contract has an estimated value of around NOK 5 billion and will amount to about 3 000 man-years.

"This is one of the most important contracts in the market this year. We are proud of the confidence Statoil is showing us by awarding Kvaerner the contract to upgrade Njord A for future decades of production", says Jan Arve Haugan, President & CEO of Kvaerner.

After a few years of adaptions, the Norwegian oil- and gas industry has already started to demonstrate considerable cost reductions combined with increased productivity.  Haugan believes the award is a result of a higher degree of cooperation between the oil companies and suppliers for improvements.

"We notice that the efforts to strengthen competiveness are yielding results. Costs have been substantially reduced, which in turn has contributed to make investments decisions like this possible. This is gratifying not only for the license partners and Kvaerner, but for an entire industry working hard to ensure that the oil and gas sector continues to contribute to value creation, and at the same focusing attention on health, safety and environment", says Haugan.

"The Njord partners have reached a very important milestone in the work to upgrade the Njord A platform for further production. I am very pleased that we today can sign the contract with Kvaerner at Stord. The work represents considerable ripple effects nationally and regionally", says Senior Vice President for Project Development in Statoil, Torger Rød. "This contract shows that adaptions of a joint Norwegian oil industry over the last years are resulting in new activity and employment. The work that now will be executed is important for the platform to resume secure and efficient operations at the field and become a centre for tie-ins of new fields in the future", says Rød.

The new contract was initiated when Statoil and Kvaerner 1 April 2016 signed a framework agreement for upgrading of the platform. The frame agreement is based on a project execution plan where Statoil, on behalf of the license partners, has an option to call-off the execution of further phases. Kvaerner has since signing of the frame agreement been awarded options for front-end engineering and design (FEED), yard stay at Kvaerner's Stord yard and a so-called pre-EPC phase with a total value of NOK 500 million. With today's award, Statoil declares the main option in the agreement from April last year.