STAVANGER, Norway, June 3 (UPI) -- Norwegian energy company Statoil said it awarded a $72 million contract to build part of the platforms for the giant offshore Johan Sverdrup field.
Statoil awarded a fabrication contract to Rosenberg WorleyParsons, a Norwegian company, to help with platform construction for installations planned for the Johan Sverdrup field. With construction planned for the port city of Stavanger, the energy company said the program is a domestic triumph.
"This is an important delivery for the Johan Sverdrup project, and we look forward to a close collaboration in Stavanger in the time ahead," project director Kjetel Digre said in a statement. "The project execution is progressing as planned."
Statoil and its partners at Johan Sverdrup, Maersk Oil and Lundin Petroleum, in early 2014 outlined the development plan for the field using multiple phases. At least half of the secondary construction contracts for Johan Sverdrup are slated for Norwegian companies.
The first phase of development of the Johan Svedrup field calls for four platforms and Rosenberg WorleyParsons will build the structures that connect those platforms. The first phase of operations at the offshore field should yield up to 380,000 barrels of oil per day, roughly half of the expected peak production rate. Once in full swing, the field, the fifth largest discovered off the Norwegian coast, should account for up to 25 percent of all Norwegian petroleum production.
Contracts worth more than $5.7 billion have been awarded for the project, with more than 70 percent of them going to Norwegian companies. Norway's energy regulator said production at Johan Svedrup is expected to start at the end of 2019 and last through 2050.