GE wins major contract for Statoil’s Johan Sverdrup development

LONDON -- Statoil has awarded GE Oil & Gas a significant surface wellhead and Christmas tree equipment and services contract for its landmark Johan Sverdrup project in the North Sea.

With the new multi-year agreement, GE Oil & Gas will manufacture, deliver and install its standardized surface wellhead and Christmas tree systems at multiple wells that make up part of the field. Located 155 km west of Stavanger, Norway, Johan Sverdrup is one of the five biggest oil fields on the Norwegian Continental Shelf, with expected resources of between 1.7 Bboe and 3 Bboe.

The agreement, which will service and support the project over the life of the field, strengthens GE’s position as a leading technology and equipment company to the region’s oil and gas industry. The Christmas tree system that GE Oil & Gas will provide incorporates a special valve that increases the longevity of maintenance intervals, resulting in reduced downtime for the operator. This will drive higher productivity and lower operational expenditure. 

GE’s technology reduces the need for maintenance during the operations phase beyond the standard practices, meaning any work can be carefully planned and performed, providing further operational savings as well as making the wells more productive. 

In addition to supplying this equipment, Statoil can also take advantage of GE Oil & Gas’ digital capabilities. The two companies already collaborate on several technology projects but this deal opens opportunities for Statoil to utilize the full range of digital solutions that GE offers in order to drive higher productivity and create “smarter” wells.

"The Johan Sverdrup field is one of the largest and most important fields in the world today, and this deal will bring GE Oil & Gas’ leading equipment to the project to help ensure optimized and productive efficiency,” Michele Stangarone, president and CEO, Europe, GE Oil & Gas, said.