OSLO: Aker BP has awarded Kvaerner AS the contract for delivering the topside and steel substructure for the normally unmanned wellhead platform at the Hod field.

The contract is an important part of Kvaerner’s strategy to be the leading supplier of cost efficient, unmanned platforms. The contract has a value of approximately NOK 1 billion for Kvaerner.

“After a very demanding spring, we are very pleased that we, together with our alliance partners now can commence work on the Hod wellhead platform. Within a short period of time laid-off staff at Kvaerner’s yard in Verdal will be back to work. In this yard in Central Norway, we have already started deliveries to Equinor for the steel jacket to the latest platform at Johan Sverdrup as part of the phase two development – as well as modules for the floating production ship Johan Castberg. Now the Hod project will give new work the next year. As a result, Kvaerner has a good foundation for further improvement and further development of the business”, says Karl-Petter Løken, CEO of Kvaerner

Kvaerner’s delivery to Hod will include design, procurement, fabrication, preparation for sea transport, as well as hook-up and assistance for completion on the field. Prefabrication in Verdal starts today.

The steel jacket and top side will be ready for delivery and shipment in summer 2021. Hook-up and completion on the field will take place immediately thereafter. On average, about 250 people will work on the project at Kvaerner’s yard in Verdal. The activity will be at its peak in the fall of 2020, when about 400 people will work on the project. It is estimated that the total number of full-time equivalents for the entire project when delivered to Aker BP can be around 5 000, including all ripple effects.

The new Hod development will leverage on the experience from the delivery of the wellhead platform to the Valhall Flank West project, which was delivered last summer. Valhall Flank West was the first wellhead platform delivered through the wellhead platform alliance. Upon delivery, this platform set a new standard for how finalised an installation can be before actual installation on the field.

The delivery was completed without serious damage to people or the environment, and the platform was delivered within the agreed plan and budget. The short execution time helped Aker BP to commence production on the field many months earlier than under a normal execution plan.

“Through the Valhall Flank West project, we were able to develop new solutions and implement and improve a number of areas within safety and efficiency. At the same time, we reduced the cost level for this kind of projects. This has attracted attention in the industry and several oil companies are now considering these over the coming years. We will now take a step further with Hod, which is an approximate copy of Valhall Flank West, and we see huge opportunities to optimise our execution model through the reuse of personnel, facilities and equipment. This will strengthen our competitiveness further, and hopefully make us even more attractive to future clients”, says Karl-Petter Løken.