Kværner wins EPSC contract to Hild field from Total

Kværner ASA (OSE: KVAER) has through its subsidiary Kværner Verdal AS won an EPSC-contract worth nearly 1.2 billion NOK for a steel jacket onto Hild Field offshore Norwegian North Sea. This is the second such order for Kvaerner this year following the Luno field jacket EPC contract announced last month. Construction work will start in Q4 with planned delivery. The stock gained 3%.

Hild gas field resources have been known for a long time but only recent technological advances enabled the field operator Total Group (51%) together with Petoro AS(30%) and Statoil (OSE:STL, NYSE:STO, 19%) to start developing the field with PDO having been submitted to authorities recently . Total announced that partners plan for investments of 25.6 billion NOK.

Hild field has reserves of around190 million barrels of oil equivalent (boe). The production should start in 2016 with estimated 100 000 boe per day peak production. Water depth is 115 meters with separate gas/condensate and oil reservoirs. Power will be supplied from the Norwegian mainland with 170 km long cable and processed gas will be exported to St Fergus in the UK via a new link to the existing Frigg UK Pipeline.