Statoil has signed a letter of intent with Sembcorp Marine Rigs and Floaters in Singapore for the construction of the hull and integrated living quarters for a floating production, storage and offloading (FPSO) vessel on the Johan Castberg field in the Barents Sea.
The NOK4 billion (US$500 million) contract, which was won through international competitive bidding, covers engineering, procurement and construction.
The Johan Castberg development, which is 240 kilometres north-west of Hammerfest, will consist of a large subsea system tied in to a FPSO vessel. Recoverable resources are estimated at 450-650 million barrels of oil equivalent.
The contract will have a separate cancellation clause linked to the approval of the plan for development and operation (PDO). The contract will be signed at the final investment decision scheduled before Christmas.
"Analyses from Agenda Kaupang show that the project will generate some 47,000 man-years of employment in Norway in the development phase from 2018 to 2022 given a competitive Norwegian supply industry," says Torger Rød, Statoil's Senior Vice President for Project Development.
