Seismic players land multi-year frame deal with Equinor

Norway’s Equinor has entered into framework agreements with PGS and Shearwater GeoServices for 4D towed streamer seismic acquisition on the Norwegian continental shelf.

The two-year firm deal is starting in 2021, with two additional two-year options and can also be applied for the UK continental shelf.

“This is a new way of working with seismic suppliers. We are moving away from annual tenders towards a more long-term collaboration model. This will ensure improved predictability and more sustainable rates for suppliers in the seismic industry that is traditionally exposed to significant cyclicality,” says Peggy Krantz-Underland, Equinor’s chief procurement officer.

PGS will acquire two 4D GeoStreamer monitoring surveys in 2021 over Fram and Tordis/Vigdis fields. The first survey should commence in June 2021. Total duration for the two 2021 projects is around two-and-a-half months.

PGS has also won a specific framework agreement for 4D seismic services at the Gullfaks field. The agreement comprises an exclusive right to acquire up to three surveys prior to 2031.

“We operate in a cyclical industry with low visibility, and longer-term contracts improve our order book and financial predictability in a challenging seismic market,” says Rune Olav Pedersen, president & CEO in PGS.

As for Shearwater, the seismic player won an initial survey over the Heidrun Field in the Norwegian North Sea.

Shearwater will specifically allocate one of its Isometrix vessels for the one-month Heidrun survey, which starts in Q2 2021.

“This new frame agreement provides us with increased visibility and the opportunity to optimise utilisation and efficiency into the future,” said Irene Waage Basili, the CEO of Shearwater GeoServices.

Equinor said the agreements have a total estimated value of around NOK 700 million.