DeepWell in long term wireline services deal with Statoil
- Business & Finance
Norwegian well intervention company DeepWell has secured a long-term contract for the provision of mechanical wireline services to Statoil.
The contract value for the firm period, including options for add-on services, is estimated to exceed NOK 1 billion ($118 million) over a four-year period. If the option periods are included the value of the deal climbs to more than NOK 2 billion.
DeepWell’s existing contract with Statoil dates back to 2009. The new contract secures activity and visibility for DeepWell and its employees for the next decade.
The contract covers provision of mechanical wireline services for 10 fixed installations (Gullfaks A, B & C, Statfjord A, B & C, Snorre A & B and Sleipner A & Vest) as well as 11 floaters (semi-submersible drilling rigs), and establishes DeepWell as the largest player in this market.
The contract has a fixed term of 4 years plus three 2-year extension options, for a potential contract period of 10 years. Additional optional scope under the contract includes logging and other conveyance services.