Aker Solutions bags another North Sea extension with ConocoPhillips
U.S.-headquartered energy giant ConocoPhillips has awarded another extension for maintenance and modification work on its North Sea fields to Norway’s offshore engineering services provider Aker Solutions.
Aker Solutions revealed on Wednesday that it has secured a significant three-year contract extension to an existing framework agreement for work at North Sea fields operated by ConocoPhillips Skandinavia. Aker Solutions defines a significant contract as worth between NOK 1.5 billion (over $158 million) and NOK 2.5 billion (around $263.5 million).
To remind, the original framework agreement was inked in February 2016 for a period of five years. In September 2020, the Norwegian engineering services player secured its first three-year contract extension.
The latest extension will enable Aker Solutions to continue as ConocoPhillips’ main supplier of maintenance and modifications work offshore Norway. Thanks to this extension, the agreement will run from January 2024 until the end of 2026.
Paal Eikeseth, executive vice president and head of Aker Solutions’ electrification, maintenance and modifications business, remarked: “We are pleased to continue our longstanding relationship with ConocoPhillips and look forward to continue to deliver our solutions and services to one of the largest maintenance and modifications portfolios offshore Norway.”
The engineering services provider explained that the contract value will be determined by future call-offs for maintenance and modifications work and could range between NOK 500 million (about $52.7 million) and NOK 800 million (over $84.3 million) per year. The company also added that this estimate does not represent a minimum or maximum amount and is subject to change.
Furthermore, Aker Solutions confirmed that the work will be managed and executed by its office in Stavanger and fabrication yard in Egersund. In addition, this deal will provide work for the company’s offshore employees.
The Norwegian player further stated that this contract will be booked as order intake in the second quarter of 2022 in the Electrification, Maintenance and Modifications segment.
When it comes to Aker Solutions’ latest deals with other operators, the Norwegian company won a seven-year extension of its maintenance and modifications agreement with OKEA in March 2022.