ABB wins safety and automation agreement for new offshore oil field development in Norway
Feb. 6, 2017
Innovative project execution set to contribute to reduced capital expenditure for the Johan Castberg field in the Barents Sea.
ABB has signed a project specific agreement for the safety and automation system with Statoil for the Johan Castberg offshore oil field development. Statoil has issued the first call-off from the agreement covering front end engineering and design (FEED).
“We appreciate to be involved at such an early stage in the project. Together with Statoil we can immediately develop standard design solutions using our world-class 800xA safety and automation system. The innovative approach streamlines project execution, and helps reduce capital expenditure,” says Per Erik Holsten, managing director for ABB’s oil, gas and chemical business.
The agreement is the first for the project and includes a right to order the actual system in the event of final investment decision. According to Holsten, ABB will contribute with extensive domain knowledge within oil and gas production and optimization, combined with 40 years’ experience in safety and automation systems to the industry.
Holsten points out that digitalization with advanced safety and automation is vital for safe, efficient, reliable and environmentally friendly operation of any industrial plant and particularly oil, gas and chemical facilities.
”For offshore fields like Johan Castberg located in the Barents Sea, having state-of-the-art safety and automation systems is absolutely critical,” says Holsten. “Possible future condition-based and predictive maintenance, and remote monitoring and operations, may further reduce exposing humans and nature to risks. At the same time such services may decrease the operational expenditures and increase productivity”.
Engineers from ABB in Norway are performing the FEED in close collaboration with Statoil. The FEED is scheduled to run until Q4 2017, when the final investment decision will take place. Every onshore and offshore oil and gas facility above the Arctic Circle in Norway features safety and automation systems provided by ABB.
Johan Castberg features proven resources of 450 – 650 million barrels of oil. It is estimated to produce oil for more than 30 years at a value of NOK 290 billion, approximately USD 35 billion (2015 value).
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