DUDGEON

As operator, Statoil has awarded two contracts to Siemens plc for the engineering, supply, assembly, commissioning and service of 67 wind turbine generators for the Dudgeon Offshore Wind Farm project.

The wind turbine generator (WTG) supply contract will cover engineering, procurement, assembly and offshore commissioning. Each turbine (6.0 MW) consists of a tower section, a nacelle and three separate rotor blades (154-metre rotor diameter). The engineering work will commence in January 2014 and contributes to design development of the project’s design work for foundations and electrical infrastructure. The first batch of turbines shall be ready for load out and installation January 2017. The service contract will cover operations and maintenance of the WTGs through the first two years after installation is completed, followed by three years where Siemens plc provides Dudgeon with technicians and other agreed services. The estimated value for both contracts is GBP 516 million.

The execution of the Dudgeon Offshore Wind Farm project is subject to final investment decision in Q3 2014.

Statoil renewable energy senior vice president Siri Espedal Kindem states that this is a significant milestone for the Dudgeon offshore wind project and its owners. "The new turbine contract will secure planned progress in the Dudgeon project towards full operation during 2017. Technology development is fundamental to optimising offshore wind industry costs and solutions, and the use of new large turbines such as these is a main contributor to reducing offshore wind costs."

The Dudgeon Offshore Wind Farm is Statoil's second full-scale commercial offshore wind project, and a key project in Norfolk. Following a successful partnership in developing the Sheringham Shoal Offshore Wind Farm off the coast of North Norfolk, Statoil and Statkraft are working together to develop Dudgeon. Once in operation, the wind farm will provide renewable energy to approximately 400,000 households in the UK market.

"This WTG contract is important for further developing the Dudgeon project towards concept selection and a final investment decision in 2014. We have gained valuable experience to build on from Sheringham Shoal from both the installation and operational phases," says Statoil offshore wind project vice president Halfdan Brustad.

"In Dudgeon we seek to optimise solutions even further to bring down electricity costs, and we will have a strong cooperation with Siemens in operation and maintenance to ensure high regularity."

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About the owners

Dudgeon Offshore Wind Limited, which holds the licenses and consents to enable it to construct the Dudgeon offshore wind farm, is owned by two Norwegian companies, Statoil (70%) and Statkraft (30%). Statoil holds the responsibility as operator for both the construction and the operational phase.

Statoil is an international energy company with operations in 33 countries. Building on 40 years of experience from oil and gas production on the Norwegian continental shelf, it is committed to accommodating the world's energy needs in a responsible manner, applying technology and creating innovative business solutions. It is headquartered in Stavanger, Norway with approximately 23,000 employees worldwide, and is listed on the New York and Oslo stock exchanges.

Statkraft is Europe's largest generator of renewable energy and is the leading power company in Norway. The company owns, produces and develops hydropower, wind power, gas power and district heating. Statkraft is a major player in European power trading and has 3,600 employees in more than 20 countries.

For further information please contact:

Morten Eek   Dudgeon Offshore Wind Farm project   T:+47 416 89515   E: meek@statoil.com
or
Nigel Tompkins of New Ideas for Business   T: 01263 822427   M: 07860 206565   E: nigel@ni4b.co.uk
who is the Norfolk contact for media and community enquiries.

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Issue date: 14-01-14