Norwegian energy services company Aibel has secured an extension for maintenance and modification (M&M) work on the Johan Sverdrup field in the North Sea off Norway.
This comes on the heels of Aker Solutions’ announcement that it will continue to serve as the maintenance and modification services supplier on the Equinor-operated Johan Sverdrup field.
While disclosing that Equinor decided to extend the maintenance and modification agreement at the Johan Sverdrup field for the period from 2023 to 2026, Aibel highlights that it values the agreement as “a significant contract.” The company uses the term “significant” for contracts where the value is between NOK 0.5 billion (nearly $50 million) and NOK 1.5 billion (almost $149 million).
As a reminder, Aibel was awarded, together with Aker Solutions, M&M assignments in 2019 at the Johan Sverdrup field, valid until 2022, as a call-off in the companies’ existing M&M frame agreements. However, Equinor now decided to extend this arrangement with Aibel and Aker Solutions until February 2026.
Mads Andersen , President and CEO of Aibel, remarked: “This is very positive for the maintenance and modification part of our business, and especially for the Stavanger office and the fabrication work in Haugesund and offshore.
“We have received good feedback from Equinor regarding deliveries, expertise and cooperation at Johan Sverdrup. This has formed the basis for the extension of the agreement, and now it is important that we continue the good M&M work for the years ahead”.
Aside from the M&M agreement, Aibel contributed to the development of the Johan Sverdrup field in other ways. As a result, contracts secured in relation to this project are worth around NOK 30 billion (over $2.9 billion). These deals include the delivery of the drilling platform and the P2 processing platform , as well as the two power-from-shore facilities at Haugsneset. The P2 platform was installed in March 2022 using the Allseas-owned Pioneering Spirit vessel.
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With estimated resources of 2.7 billion barrels of oil equivalent, the Johan Sverdrup field – located on Utsira High in the central part of the North Sea, in a water depth of 110-120 metres – is the third-largest oil field on the Norwegian continental shelf. The field, discovered in 2010, has an estimated 50-year lifespan.
Regarding Aibel’s recent deals, it is worth noting that the firm entered into a 10-year agreement with Equinor to ensure a close and long-term strategic collaboration.