Joint venture Kvaerner-KBR has signed a contract with Staoil in regards to the Johan Sverdrup field development and the delivery of platform topsides, a project worth an estimated NOK 6.7 billion.
The decision follows a recent international competition in which firms were required to submit their bids for the delivery and Kvaerner-KBR (who are acting as a 51-49 percent joint venture) presented the best overall bid, which included sustainable cost savings.
“The market has shown a strong interest in this contract, and Kvaerner and KBR have won the contract in tough international competition. So far the Norwegian supplier industry has won the main Johan Sverdrup contracts. It is good to see that Staoil and the supplies jointly are about to break the cost curve to ensure competitive force in a tough time for the whole industry” said Margaret Ovrum, Executive Vice-President for Technology, Projects and Drilling in Staoil.
Stuart Bradie, KBR’S President & CEO explained further: “This is another milestone in the industry’s on-going improvements. The success of this process is based on close cooperation with our customers. KBR has had significant track record in all sectors of the North Sea and in particular in Norway. KBR is pleased to be working with Staoil in their exciting new development for Johan Sverdrup, and also alongside Kvaerner in a strategic partnership. KBR’s experience in designing for cost savings, ease of project execution, and safe & effective construction, emanates from its heritage in the Offshore Oil & Gas Industry. We look forward to achieving new benchmarks for such projects.”
“As part of its mid-2014 strategic re-development, KBR has significantly reduced costs and increased productivity throughout its global businesses. The improvement include changes to its structural organization, cost base, work processes and customer focus, as well as a more effective cooperation with partners and subcontractors. The award of this new contract is attributable to those efforts. Through the preparations for the Johan Sverdrup bid, Kvaerner-BBKR has established a model which leverages the compatible expertise in the joint venture. The partners will therefore continue to pursue other future prospects, through a strategic relationship.”
This is a fantastic opportunity for these two companies and will also have wider benefits creating many job vacancies within the UK and Norway, with procurement activities occurring in both.
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