The contract covers engineering, procurement and construction (EPC) of the topside for the Johan Sverdrup utility and living quarters platform. The utility and living quarters platform may be classified into two modules – one utility module and one accommodation module. Subcontractors in Poland under management of Kvaerner will commence work on the fabrication of the utility module, which it will be complete at Stord Norway. The engineering and procurement of equipment for the utility module will be carried out by KBR. The construction of the accommodation module will be executed at Apply Leirvik’s yard in Stord Norway and in Emtunga Sweden. The topside modules will be put together at Kvaerner Stord. The topside is expected to weigh around 19,000 tons, while the utility and the accommodation modules are likely to weigh about 9,700 tons and 9,300 tons, respectively. An option for assistance in commissioning and offshore hook-up for the platform is also included in the contract. The completion of the utility and living quarters platform construction is scheduled for the first quarter of 2019. The platform will be used for all field production control and monitoring activities from the control room as well as for providing accommodation. The platform will also include central support systems for the field centre, such as emergency power, firewater systems, diesel, heat recovery and freshwater production. A gangway will link the utility and living quarters platform to the processing platform at the Johan Sverdrup field The first phase of the Johan Sverdrup development involves an investment of about NOK 117 billion (as of 2015), with estimated recoverable resources in the range of 1.4–2.4 billion barrels of oil equivalent. The recovery rate at Johan Sverdrup is targeted at 70%. Four installations will be carried out in the first phase of the Johan Sverdrup field development. These are a utility and living quarters platform, a processing platform, a drilling platform and a riser platform, and three subsea water injection templates. Licensees of the Johan Sverdrup comprise Statoil, Lundin Norway, Petoro, Detnorskeoljeselskap and Maersk Oil. Statoil is the operator for all field phases. Statoil currently carries a Zacks Rank #2 (Buy). Other players from the same space that are worth considering include Transmontaigne Partners L.P. TLP, LRR Energy, L.P. LRE and Pembina Pipeline Corporation PBA. All these stocks sport a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TRANSMONTN PTNR (TLP): Free Stock Analysis Report STATOIL ASA-ADR (STO): Free Stock Analysis Report PEMBINA PIPELN (PBA): Free Stock Analysis Report LRR ENERGY LP (LRE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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