Norwegian oil and gas company Aker BP and its alliance partner, engineering and construction company Aker Solutions, have awarded Rosenberg Worley a letter of intent to build two modules for the new central platform on the Valhall field in the North Sea, off Norway.
Aker BP said the contract represented “the largest new construction project for many yearsand this will lead to the creation of 1,000 jobs at Rosenberg in Stavanger.”
“With this award, Aker BP and Aker Solutions are securing additional continued business in Norway, in a project that falls under temporary tax changes. The choice of a Norwegian shipyard is quite deliberate. It demonstrates that we meet the policies “expectations to preserve activity, secure jobs and develop expertise in Norwegian industry in the run-up to the ramp-up of renewable energy projects,” said Aker BP CEO Karl Johnny Hervik.
More than 1,000 jobs
Aker BP and its license partners are leading a coordinated development of several licenses in the Valhall region. The project is called Valhall PWP-Fenris (formerly NCP/King Lear), and it is carried out by the Fixed Facilities Alliance between Aker BP, Aker Solutions and ABB.
Valhall PWP consists of three large modules totaling over 15,000 tons. The process module will be built by Aker Solutions on Stord. Rosenberg Worley will deliver the wellbay module and the utility module. The platform will be assembled on Stord.
The letter of intent assumes approval of the development and operating plan (PDO) by the Storting (Norwegian parliament), and it has a value for Rosenberg of around NOK 1.6 billion. (about $165.1 million).
If approved, Aker BP said, the Valhall modules will bring Iobs for over 1,000 people at Rosenberg in Stavanger. Construction is expected to start in the fall of 2023.
Rosenberg Worley General Manager John Narvestad said: “The construction of the Valhall modules will be important to maintain the high level of activity and will help preserve Rosenberg’s expertise and capacity in expanding current projects and into new markets. We expect that around 40 apprentices will be able to complete their professional training thanks to the project. These are young people who will be essential for the development of renewable projects in our company in the future.
Up to NOK 50 billion for an offshore gas hub
Aker BP and licensing partners Pandion Energy og PGNiG Upstream Norway plan to invest between NOK 40-50 billion in Valhall PWP-Fenris. The partners are on track to submit the PDO towards the end of 2022. The PDO will be deliberated in the Norwegian parliament before summer 2023.
“Through Valhall PWP-Fenris, we plan to develop Valhall into a gas hub in the Southern North Sea, which will provide much needed gas deliveries to Europe. At the same time, we will maximize the value of a giant with very low emissions on the Norwegian shelf This project is an important contribution to the ambition to produce a total of two billion barrels and to extend the life of the Valhall area until 2060. The value creation of this area has wide ripple effects and provides substantial tax revenue for society at large,” says Karl Johnny Hersvik of Aker BP.
In total, the Valhall PWP-Fenris development is expected to create 65,000 full-time equivalents in Norway during the project and operational phase. The Norwegian share of the project is over 65%.