Photo: COSL Pioneer; Source: COSL Drilling Europe

COSL, Equinor ink new master framework agreement

COSL Drilling Europe (CDE) has signed a master framework agreement with Equinor on the Norwegian Continental Shelf, that fully enables it to provide additional drilling units and services to the oil major.

Frank Tollefsen; Source: COSL Drilling Europe
Frank Tollefsen; Source: COSL Drilling Europe

CDE said that the agreement would strengthen the cooperation between the companies and facilitate long-term collaboration at all levels.

The company added that the parties would commit to working on technology development as well as operational enhancements with initiatives to limit greenhouse gas emissions from drilling operations.

According to the offshore driller, the agreement also lays out a framework for the delivery of integrated services.

Frank Tollefsen, CEO of COSL Drilling Europe, said: “Equinor is still our most important customer. We have very effective rigs with a technology that can help Equinor reach its recently announced goal of an “emission-free” Norwegian Continental Shelf.

One of our rigs that Equinor uses, has been rated their best rig multiple times the last five years. With this agreement, we can now fully compete for Equinor contract awards on the same terms as our competitors. I am very pleased with that”.

New master agreement – a fresh start

It has been over four years since Equinor terminated rig contracts with COSL. Namely, Equinor, then Statoil, in March 2016 terminated a contract for the COSLInnovator semi-sub following a fatal accident onboard the rig in December 2015.

COSLInnovator; Source: COSL
COSLInnovator; Source: COSL

Following the termination, COSL in December 2016 took Equinor to court, claiming that the termination was unlawful. COSL believed it was entitled to compensation for the termination.

In January this year, COSL and Equinor reached an agreement related to the termination. As part of the agreement, Equinor paid $188 million to COSL Offshore Management.

At the time, the companies disclosed that they would enter into a new master frame agreement which was now signed.

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