Kværner Stord secured the construction of the topside based on several factors, but the crucial ones were quality, timescales and price, says Anders Henriksson, Project Director at Lundin Norway AS. Foto: Kjell Brustad

Chose Norway for new rig

'We have a tough race ahead of us, but all the indications are that we will launch operations on schedule! We are building in Norway in order to stay on schedule, and our collaborative partners' deliveries have been completely in line with our expectations,' says Bjørn Johnsen, Project Manager for Lundin Norway at Kværner Stord.

The oil operator Lundin Norway chose Norwegian for the construction of the topside of the Edvard Grieg platform, and production is on schedule at Kværner's shipyard in Stord. In December 2015 the new platform worth NOK 25 billion will be in place and ready for production on the Norwegian continental shelf.

Going according to plan

'The initial phase is critical and essential for the flow of a project, and it is also at this point that the conditions for the selection of the EPC contractor (Engineering, Procurement and Construction) are laid down,' says Anders Henriksson, Project Director at Lundin Norway AS. 

In recent years, the production of a number of oil and gas installations for the Norwegian continental shelf has taken place abroad due to lower estimated costs. Lundin Norway chose Norwegian precisely to ensure quality and delivery on time, and to keep costs under control.

Unforeseen costs?

'In productions that are as comprehensive as this, it is a challenge to calculate the final costs, but from experience we often see that large costs are incurred for unforeseen project management when construction takes place in, for example, Asia,' explains Henriksson.

'In the design process for Edvard Grieg, we dedicated significant resources towards the FEED process (Front end engineering design), and after approximately nine months of work we were able to obtain bids from two foreign and one domestic shipyard.

Quality, timescales, and price

Kværner Stord secured the construction of the topside based on several factors, but the crucial ones were quality, timescales, and price.

'Previous experience shows that we work well together with Kværner. Work and information flows are secured through dialogue in letter form, where details are specified and evaluated,' says the Project Director.

Lundin Norway has 60-70 of its own employees in Stord during the production period, and this figure is significantly lower than what is often required when building in, for example, Asia. It is costly to have their own employees or consultants representing them on the other side of the world, particularly if the schedule begins to crack.

According to the schedule, Edvard Grieg should be complete during the fourth quarter of 2015, and Lundin Norway expects it to be operational with immediate effect so that planned production volumes are maintained.

Finding solutions

'The biggest challenge we have met so far has been the delayed delivery of equipment from subcontractors, which has often been due to lack of staff resources following the credit crunch. Despite the fact that the economy is back up to speed, there has been some reluctance to tie up funds in new employees to ensure that deliveries take place as expected. When we meet such challenges, it is reassuring to have Kværner and Aker on board, and together we have found solutions that provide the quality that we emphasise at Lundin Norway,' says Anders Henriksson.