Statoil has made a call-off from the framework agreement signed with Kvaerner regarding the upgrade of the Njord A semi-submersible platform.
The work includes preparations and dockings of the platform and has an estimated value of NOK 350 million (£462.59 million), the company informed.
“The option that now has been called-off is for preparations of reconstruction and execution of docking of the platform, which includes removal of derrick, flare, lifeboat system and inspection,” Kvaerner said in a statement.
North Sea Njord A Work Awarded to Kvaerner
“Prefabrication of time critical elements, mainly two pontoons that will increase the buoyancy of the hull, is also a part of the scope,” the company stated further.
Kvaerned had signed a project framework agreement (PFA) with Statoil on 1 April for the upgrading of the semi-submersible platform based on a project execution plan whereby Statoil had the option to call off the execution of further phases.
Njord A being towed to Kvaerner’s Stord yard
At the time of the signing of the PFA, Statoil called-off front-end engineering and design (FEED) and later in May, the company called-off for yard stay at Kvaerner’s Stord yard.
At the same time, the company will start fabricating the two new pontoons, in a dry dock phase that is expected to last until the end of August 2017.
Statoil Ups Njord Expectations
When the Njord field was first developed, it was scheduled for production until 2013, but since then, Statoil has been able to recover more of the reserves than it initially expected, and now estimates the field to continue operating for at least ten more years.
According to Statoil estimates, the field’s renovation requires production from Njord and Hyme, which could hold 177 million barrels of oil equivalent.
The Snilehorn discovery is scheduled for tie-in to Njord and could contain 66 million barrels.