Kvaerner ASA (OSE: KVAER) said in a release today that it has received LOI from Lundin Norway AS, a subsidiary of Lundin Petroleum AB (STO:LUPE), for engineering procurement and construction of Edvard Grieg (formerly Luno) platform topside. It will have a total weight of 21000 tonne with a main topside module, a living quarter including utilities module, process module and a flare tower. The estimated value of the contract is 8 billion NOK with estimated delivery in 2015.
This is the second contract for Kvaerner from Lundin’s new platform on the NCS following 14500 tonne steel field jacket EPC contract announced in January. President & CEO Jan Arve Haugan feels this contract validates the company’s position as leading provider of complex integrated topsides. Several of Kvaerner's partners can expect their own contract awards stemming from this, with iving quarter already sub-contracted to Apply Leirvik AS. Most of the work will be done in Norway.
Edvard Grieg oil field is expected to begin production in late 2015, with forecasted peak production of 90 0000 bopd. Lundin is the operator and has a 50% stake with other partners being Wintershall Norge (a subsidiary of world’s leading chemical company BASF SE from Germany, 30%) and RWE Dea Norge AS (a subsidiary of RWE Dea AG which in turn is a subsidiary of German electric power and natural gas public utility RWE AG, 20%).
Showing posts with label KVAER. Show all posts
Showing posts with label KVAER. Show all posts
Thursday, 3 May 2012
Thursday, 19 April 2012
Contract from Shell jumpstarts Kvaerner
An Engineering, Procurement, Construction and Management (EPCM) contract for modifications and projects at the Ormen Lange/Nyhamna onshore facilities has been awarded to Kvaerner (OSE: KVAER) by A/S Norske Shell. The six-year (with a two plus two year option to extend) framework agreement is worth an estimated 6 billion NOK for the initial duration.
The contract is the largest of its kind in Norway this year. Shell appreciated Kvaerner’s HSE performance history and values continuity. The Nyhamna gas plant processes natural gas from Ormen Lange gas field in Møre Basin on the Norwegian Sea. Kvaerner had major contracts for the initial construction of the facilities almost 10 years ago and that work was completed in 2007. This project is a new challenge as the plant will stay in full production.
Front end engineering and design will start immediately and the project is expected to generate value for the next five to ten years. Kvaerner is up almost 8% with 15 minutes left in today’s session.
The contract is the largest of its kind in Norway this year. Shell appreciated Kvaerner’s HSE performance history and values continuity. The Nyhamna gas plant processes natural gas from Ormen Lange gas field in Møre Basin on the Norwegian Sea. Kvaerner had major contracts for the initial construction of the facilities almost 10 years ago and that work was completed in 2007. This project is a new challenge as the plant will stay in full production.
Front end engineering and design will start immediately and the project is expected to generate value for the next five to ten years. Kvaerner is up almost 8% with 15 minutes left in today’s session.
Tuesday, 14 February 2012
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.
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.
Saturday, 21 January 2012
Luno and Draupne field development plans unfolding
Luno field operator and 50% owner Lundin Norway AS, a subsidiary of Lundin Petroleum AB (STO:LUPE)), announced that field development plan for the Luno field is starting to be put in place. The oil field is located in production license PL 388 in the North Sea offshore Norway, The license also covers Tellus discovery. Other partners are Wintershall Norge (a subsidiary of world’s leading chemical company BASF SE from Germany) with 30% stake and RWE Dea Norge AS (a subsidiary of RWE Dea AG which in turn is a subsidiary of German electric power and natural gas public utility RWE AG) with 20% portion.
Light oil was discovered in the field several years ago and subsequent appraisal wells have extended recoverable reserves. There is a detailed description of the early work done on the field at offshore-technology.com. Lundin expects 90,000 barrels of oil per day (bopd) peak production. Luno contains 186 million barrels of proven and probable oil equivalents (MMboe). The field is expected to start producing in late 2015.
Lundin is in negotiations with Det norske Oljeselskap ASA (OSE: DETNOR), the operator at Draupne field on license PL001B, which is located 8 kilometres northwest of Luno, for a unitized development plan. A coordinated development solution for the two fields was requested by The Ministry of Petroleum and Energy. The Ministry’s rationale was that both society and licensees can expect substantial savings from such a solution and made the companies aware that development and operation plans would not be accepted without such an agreement in place.
Partly processed oil and gas would be transported to Luno platform from Draupne field for stabilization and export. Lundin expects that an agreement will be conducted shortly. Draupne field is expected to produce 143 million barrels of oil and gas. Luno platform design capacity will accommodate in excess of 120,000 bopd when Draupne production is combined with Luno’s. The licensees at Draupne are DETNOR (35%), Statoil (OSE:STL, 50%) and Bayerngas Norge AS (owned in decreasing order by Bayerngas GmbH, Stadtwerke München, Swissgas and TIGAS-Erdgas, 15%).
Engineering, procurement and construction (EPC) company Kvaerner (OSE: KVAER) was awarded Luno field jacket EPC contract worth approximately 1.1 billion NOK by Lundin. Kværner will deliver a steel jacket weighing some 14 500 tonnes executed by Kvaerner's yard in Verdal. The engineering starts immediately and fabrication will start in Q4 2012 with expected delivery in the spring of 2014. .
Historic Kværner name returned to prominence after a few year hiatus after a spin-off from Aker Solutions. Kværner had been around for nearly 150 years before it started a period of rapid expansion acquiring several companies in different fields. This caught up to the company when the economy turned sour upon the collapse of the dot-com bubble in the beginning of the previous decade, and it was forced to merge with rival Aker ASA or face bankruptcy.
Total capital costs for Luno field are expected to be around 4 billion USD (nearly 24 billion NOK). This includes the processing platform on a jacket, the wells and export pipelines tied to existing infrastructure (to the Grane oil pipeline). Rowan Companies Inc has a contract to provide a Rowan Stavanger jack-up rig to the area to drill the Luno development wells at an average day rate of about 340 000 USD (2 million NOK+) in between June 2013 and November 2016 to drill 15 wells. Contracts for marine installation and topside are expected to be awarded soon.
Draupne operator DETNOR has contracts in place for front-end engineering and design (FEED) study of Draupne development with Aker Solutions (OSE: AKSO) and a 400 million USD 3-year drilling contract (extendable for 7) with Maersk Drilling (a subsidiary of A.P. Moller - Maersk Group (OMX: MAERSK A, OMX: MAERSK B) for newbuild jack-up rig, XL Enhanced 2, which is designed for use in ultra harsh environment and is currently under construction in Singapore scheduled to be delivered in 2014.
Light oil was discovered in the field several years ago and subsequent appraisal wells have extended recoverable reserves. There is a detailed description of the early work done on the field at offshore-technology.com. Lundin expects 90,000 barrels of oil per day (bopd) peak production. Luno contains 186 million barrels of proven and probable oil equivalents (MMboe). The field is expected to start producing in late 2015.
Lundin is in negotiations with Det norske Oljeselskap ASA (OSE: DETNOR), the operator at Draupne field on license PL001B, which is located 8 kilometres northwest of Luno, for a unitized development plan. A coordinated development solution for the two fields was requested by The Ministry of Petroleum and Energy. The Ministry’s rationale was that both society and licensees can expect substantial savings from such a solution and made the companies aware that development and operation plans would not be accepted without such an agreement in place.
Partly processed oil and gas would be transported to Luno platform from Draupne field for stabilization and export. Lundin expects that an agreement will be conducted shortly. Draupne field is expected to produce 143 million barrels of oil and gas. Luno platform design capacity will accommodate in excess of 120,000 bopd when Draupne production is combined with Luno’s. The licensees at Draupne are DETNOR (35%), Statoil (OSE:STL, 50%) and Bayerngas Norge AS (owned in decreasing order by Bayerngas GmbH, Stadtwerke München, Swissgas and TIGAS-Erdgas, 15%).
Engineering, procurement and construction (EPC) company Kvaerner (OSE: KVAER) was awarded Luno field jacket EPC contract worth approximately 1.1 billion NOK by Lundin. Kværner will deliver a steel jacket weighing some 14 500 tonnes executed by Kvaerner's yard in Verdal. The engineering starts immediately and fabrication will start in Q4 2012 with expected delivery in the spring of 2014. .
Historic Kværner name returned to prominence after a few year hiatus after a spin-off from Aker Solutions. Kværner had been around for nearly 150 years before it started a period of rapid expansion acquiring several companies in different fields. This caught up to the company when the economy turned sour upon the collapse of the dot-com bubble in the beginning of the previous decade, and it was forced to merge with rival Aker ASA or face bankruptcy.
Total capital costs for Luno field are expected to be around 4 billion USD (nearly 24 billion NOK). This includes the processing platform on a jacket, the wells and export pipelines tied to existing infrastructure (to the Grane oil pipeline). Rowan Companies Inc has a contract to provide a Rowan Stavanger jack-up rig to the area to drill the Luno development wells at an average day rate of about 340 000 USD (2 million NOK+) in between June 2013 and November 2016 to drill 15 wells. Contracts for marine installation and topside are expected to be awarded soon.
Draupne operator DETNOR has contracts in place for front-end engineering and design (FEED) study of Draupne development with Aker Solutions (OSE: AKSO) and a 400 million USD 3-year drilling contract (extendable for 7) with Maersk Drilling (a subsidiary of A.P. Moller - Maersk Group (OMX: MAERSK A, OMX: MAERSK B) for newbuild jack-up rig, XL Enhanced 2, which is designed for use in ultra harsh environment and is currently under construction in Singapore scheduled to be delivered in 2014.
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