Statoil awards $2.7B in maintenance and modification deals

  • Business & Finance
Statoil awards $2.7B in maintenance and modification deals
Image source: Statoil

Norwegian oil company Statoil has awarded maintenance and modification agreements worth NOK 24 billion ($2.76 billion) for the company’s installations on the Norwegian continental shelf (NCS) and for the onshore plants at Sture, Kollsnes, Kårstø and Melkøya.

Kjetil Hove, senior vice president for operations technology of Development and Production Norway at Statoil, said: “These awards will strengthen the NCS competitiveness and stimulate long-term activity and value creation. We look forward to cooperating with the suppliers, and jointly achieve lasting and sustainable improvements with regard to efficient production, safe operation and high integrity at our plants.”

This time, the company decided to split the whole portfolio in two: main contractor agreements and competition agreements. The key supplier agreements portfolio has an estimated total value (including options) of NOK 24 billion. The contract period is six years plus a four-year extension option, and starts in the first quarter of 2016. Remaining options of existing maintenance & modifications agreements will not be exercised.

The main contractor agreements have been awarded to the following companies: Aibel AS; Apply Sørco AS; Reinertsen AS; Wood Group Mustang Norway AS

The competition agreements portfolio covers a period of 10 years that starts in the first quarter of 2016. The agreements form the basis for individual project competitions where one, two or more suppliers are invited to participate.

The competition agreements have been awarded to the following companies: Aibel AS; Aker Solutions AS; Apply Sørco AS; Reinertsen AS; Wood Group Mustang Norway AS.

“The procurement we have made is part of the effort of creating a more competitive industry. The importance of making continuous improvements and changing our working methods has run as a thread through the whole process. In the time ahead we will work closely with the suppliers to ensure that this work is pursued when the agreements enter into force,” says senior vice president for procurements in Statoil, Jon Arnt Jacobsen.

 

Related news

List of related news articles