Statoil dishes out new drilling contracts worth over $1.5 billion

View from the Gullfaks C platformView from the Gullfaks C platform in the North Sea. (Photo: Harald Pettersen)

Norwegian oil major Statoil has awarded new contracts to three companies for drilling, completion, intervention services, plugging, maintenance and modifications on 18 of its platforms with a total value of $1.5 billion. 

View from the Gullfaks C platformView from the Gullfaks C platform in the North Sea. (Photo: Harald Pettersen)

The contracts were awarded to Archer, KCA Deutag and Odfjell Drilling. As already reported by Offshore Energy Today, Archer has been awarded a four-year firm contract on a total of 12 fixed platforms located on the Norwegian Continental Shelf (NCS). 

Statoil said that all three contracts take effect from October 1, 2018, initially for a period of four years. The total value is estimated at more than NOK 12 billion ($1.52 billion). The contracts include three two-year extension options. The work will employ around 2000 people per year.

“These contract awards will help ensure safe and efficient well deliveries, and sustain a high level of activities on the Norwegian continental shelf. A resilient manpower base capable of performing the required scope of work has been an important selection criterion,” says Geir Tungesvik, Statoil’s senior vice president, drilling & well.

Statoil explained that these long-term contracts will increase the predictability and ensure stable operating conditions for the suppliers and Statoil.

“The contracts provide us with a good foundation for close and predictable collaboration. We thus facilitate safe and efficient operations. The contracts are aimed at improving our joint competitiveness and enabling a sound level of activities,” says Statoil’s chief procurement officer, Pål Eitrheim.

One of the intentions of the contracts is to improve the collaboration between Statoil, the drilling contractors and service contractors. A common incentive program will stimulate safe and efficient operations through close collaboration and integration of work.

Under the contract, Archer will work on Grane, Gullfaks A, B & C, Njord, Sleipner, Snorre A & B, Statfjord A, B & C, and Visund platforms. KCA Deutag will work on Kvitebjørn and Oseberg B, C, South & East and Odfjell Drilling will work on the Heidrun platform.

In addition, Statoil has existing drilling contracts with Odfjell Drilling for Johan Sverdrup and Mariner, and KCA Deutag for the two Cat J rigs operating at Gullfaks and Oseberg.

Odfjell Drilling will start operations on the Mariner and the Johan Sverdrup field during the second half 2018.