Sembmarine clarifies media reports on Johan Castberg project

Sembmarine’s work on the FPSO vessel has been hit by “serious manpower shortages” due to Covid-19, said a report. PHOTO: SEMBCORP MARINE

Singapore-based Sembcorp Marine (Sembmarine) has in a press release clarified media reports on the Johan Castberg project offshore Norway.

Last week, The Business Times published an article citing a media report that Sembmarine’s work on the Johan Castberg vessel has been hit by “serious manpower shortages” due to the Covid-19 pandemic and that the project owner is set to transport the unfinished components from Singapore to Norway, The Straits Times writes. 

The report by trade publication Upstream said Norwegian energy company Equinor will transport the unfinished hull and turret for the Johan Castberg FPSO vessel to Norway, due to delays and escalating costs. These components were being built at Sembmarine’s yard, the report said.

Sembmarine states in the press release that it would like to provide the following clarifications.

“Sembcorp Marine’s scope of work for the Johan Castberg Floating, Production, Storage and Offloading (FPSO) vessel comprises the construction of the hull and living quarters and installation of the turret supplied by its customer, Equinor. The construction of the topside modules, module integration, and final completion is not part of the Company’s scope of work and has always been intended by Equinor to be performed in Norway. 

The work on the hull and the living quarters were in an advanced stage when the COVID-19 pandemic occurred, resulting in various work restrictions which caused delays in the project. During the construction of the hull, there were variations and additions to the scope of work and these also required additional time to complete. The remaining scope of work left is small relative to the base scope and variations that have been completed by the Company. 

Presently, the Johan Castberg hull and living quarters are largely completed. However, due to the available transportation window for the towing operations to Norway, Equinor has requested that the Company plan the remaining scope of work to accommodate the towing window. Such adjustments are provided for in the terms of the Contract and the Company and Equinor are presently finalizing these arrangements.”

About Gregers Møller

Editor-in-Chief • ScandAsia Publishing Co., Ltd. • Bangkok, Thailand

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