Castberg supplier survey commenced

The North Norwegian supplier network Petro Arctic has started surveying potential suppliers to the Johan Castberg development. The total investment will reach between 50 and 60 billion NOK.

Statoil wants to survey what opportunities there are in the supply industry in the north when one of the world’s largest FPSO for oil and gas is to be constructed and put in operation off the shore of Finnmark, Norway’s northernmost county. Petro Arctic holds the task of conducting the survey.

Gathering information for Statoil

Kjell Giæver, Managing Director of Petro Arctic, tells High North News that this is among the primary tasks of a supplier network.

- Statoil provides us with a description of which demands they envision, and we pass this information on to everyone in the supply industry. They then report their offers or opportunities back to us, we collate the information in a manageable format and pass it on to the oil company.

Giæver points out that the demands cover a big variety of goods and services.

Ship equipment, gravel and flame towers

- The first ones out are suppliers for fabrication of seabed equipment, larger elements for the vessel, such as flame tower and process modules, storage areas and not to forget: significant amounts of gravel for use on the seabed.

The Johan Castberg development is planned for the 2018-2022 period, subject to a final investment decision to be made in 2017. The field will consist of approximately 30 offshore wells and is one of the largest subsea developments in the industry at the moment. Fabrication of equipment and the installation phase on the seabed may cause a significant ripple effect for the industry in Northern Norway. It is therefore of the utmost importance that Statoil highlights these contracts and provides suppliers in the north with the chance to compete for them, Kjell Giæver says.

Very competitive in the north

- The supply industry in Northern Norway has developed rapidly over the past few years and appears competitive on both price and quality in the deliveries to the oil and gas industry. Now we are looking forward to contributing, says the leader of Petro Arctic.

Marit Lind of Statoil, Project Procurement Manager for Johan Castberg, says the development provides significant opportunities for creating value, growth and jobs all over Norway.

- The Johan Castberg project has an investment estimate in the range of 50 to 60 billion NOK and will constitute a significant part of the activities on the Norwegian shelf for many years to come. Through this survey we want to facilitate and highlight the opportunities for the relevant supplier industry in Northern Norway, says Marit Lind.