Snohvit Contracts To Be Awarded Next Spring

Statoil is making preparations for the awarding of contracts in spring 2002 in connection with the Snohvit project in the Barents Sea. These contracts are worth billions of kroner and include assignments both onshore and offshore. The contracts for the land assignments on Melkoya off Hammerfest in Finnmark county will be first. Karl Jaetnes, project director for the land assignments, reports that the contract for the leveling of the industrial site and the construction of a two-kilometer subsea road tunnel from Hammerfest to Melkoya will be awarded by March.

The project is preparing to tender out engineering works, procurement and construction of a barge and four product tankers on Melkoya – two for liquefied natural gas (LNG), one for liquefied petroleum gases (LPG) and one for condensate (light oil). The barge will be essential for the LNG processing facility. In 2003 the construction of this processing facility will be put out to tender.

With regard to the offshore assignments, the contract for the engineering, procurement and fabrication of the subsea production system will be placed in the middle of 2002. This includes a 160-kilometer control cable between land and the field.

In 2002, a contract will be awarded for the hiring of a rig for drilling and completion of the offshore work between 2004 and 2005. A contract for the engineering of pipelines from the field to land will also be awarded. Leif Arne Hoyland, director for the offshore assignments, reports that all the contracts will be awarded by 2004.

All the contracts are subject to government approval of the Snohvit development. Estimates show that the project will cost around NOK 46 billion kroner in money of the day. This includes investments associated with the ships that will carry LNG from Melkoya to the markets in southern Europe and North America.