Equinor has awarded NOK 2.5 billion in North Sea contracts

5/14/2019
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From the left: Chris Jones, Europe OFS leader, Peggy Krantz-Underland, senior V.P. supplier chain (/Anskaffelser), Jan Erik Klungtveit, business development manager, Geir Tungesvik, senior V.P. drilling & well and Geir Egil Olsen, director Weatherford. (Photo: Kjetil Eide / Equinor ASA).

STAVANGER -- Equinor has awarded drilling service contracts at a total value of about $290 million (NOK 2.5 billion), exclusive of options, to several suppliers. The services will be delivered to both new and existing fields on the Norwegian continental shelf.

Contracts for services related to liner hangers were signed in Equinor’s digital laboratory at Forus, Stavanger, on May 14, 2019. Contracts for additional completion and downhole monitoring have been signed earlier.

“These contacts will help us continue our safe and efficient drilling and well operations. The suppliers are specialists that we have worked with before, and we know what they stand for. We look forward to continuing our good cooperation,” says Geir Tungesvik, Equinor’s senior vice president, Drilling & Well.

The total contract value for these services is estimated at about $290 million (NOK 2.5 billion) for the 3-year fixed contact term. In addition, there are five 2-year options for all awards.

Niche deliveries

The contracts now signed cover niche deliveries complementing the integrated drilling and well service contracts signed in 2018.

“We have standardized the contract set-up between various suppliers. This simplifies the collaboration and creates win-win solutions. For these services, we do not buy services from the biggest suppliers only, but also from small-size suppliers with the required specialist competencies,” says Peggy Krantz-Underland, Equinor’s chief procurement officer.
The services are key to capturing additional value on the Norwegian continental shelf, aiming to improve the recovery rate from 50% to 60%.

Three services

The services related to liner hangers and additional completion are based on framework contracts with standardized conditions where the volume may vary. The estimated value is $111 million (NOK one billion) and NOK half a billion respectively for three years.

The downhole monitoring contracts were awarded in March, covering a predetermined scope at a value of about $111 million (NOK 1 billion) for three years.

 

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