Archer lands 4-year drilling services contract with Statoil
- Business & Finance
Archer Limited has been awarded a four-year firm contract by Statoil for the provision of drilling services on a total of 12 fixed platforms located on the Norwegian Continental Shelf (NCS). The new award will boost Archer’s employee base by 400 people.
Archer said on Tuesday that the contract award includes three contract extension options of two years each. The contract is effective from October 1, 2018 following a transition period to prepare for operations.
The firm contract award has a value of more than NOK 6 billion ($762.1M) based on the current drilling schedule and ensures Archer’s continued operations for Statoil in the Norwegian continental shelf until at least October 1, 2022. The total contract award is approximately NOK 15 billion ($1.9B) should Statoil elect to exercise all options. These values exclude additional work scope such as modifications and upgrades of the platforms in the portfolio.
Archer will with this contract award provide drilling services for Statoil on 13 platforms on the Norwegian Continental Shelf and two platforms in Brazil. The additional platforms awarded to Archer were Grane and Gullfaks A, B and C. These four rigs are currently in drilling mode, and Archer will on the beginning of the contract increase its employee base by approximately 400 people.
The terms of this new contract require Archer to further integrate, collaborate and assume additional responsibilities on location with both Statoil and its nominated service contractors to deliver wells more efficiently.
John Lechner, CEO of Archer comments: “The award of a large majority of Statoil operated platforms in the NCS is a direct result of the hard work, innovation and commitment demonstrated by all of our employees, both onshore and offshore, to deliver a high level of operational safety and technical efficiency while maintaining a safe working environment on Statoil operations.”
Lechner also added: “The eventual integrated scope will require engineering and rental services, and thus increase our projected revenue and profitability in Norway going forward.”