Statoil dishes out over $874 million in new contracts

Norwegian oil company Statoil has awarded renegotiated framework agreements to Bilfinger Industrier Norge and Kaefer Energy for insulation, scaffolding and surface (ISO) services treatment. 

Valued at a total of more than NOK 7 billion ($874.4M), the contracts will run until the end of 2030, Statoil said on Friday.

The framework agreements cover ISO services for the Norwegian continental shelf (NCS), with flexibility for use across all facilities on the NCS and onshore in Norway.

“We aim at predictability in our interaction with the suppliers. Thanks to our close and good dialogue with Bilfinger and Kaefer we have now established long-term contracts that both ensure good technical solutions, and are commercially sustainable for the companies,” says Statoil’s chief procurement officer, Pål Eitrheim.

When it comes to Bilfinger’s share of work, the extension of the existing framework agreement covers a period of 13 years and has a total volume of about €400 million ($486.4M), Bilfinger said on Friday.

This award from Statoil is the largest agreement ever won by Bilfinger Industrier Norge and around 450 employees will work within the scope of the contract.

“The long-term contract extension with Statoil is an important milestone. It confirms our very good market position in Scandinavia and strengthens our core industry oil and gas,” says Bilfinger CEO Tom Blades.

Kaefer on the other hand will be responsible for six offshore installations on the fields Troll, Åsgard and Kristin.

Kaefer CEO, Bård Bjørshol, noted the importance of this contract award in providing stable employment for many years to come.

Statoil’s senior vice president for operations technology in Development and Production Norway, Kjetil Hove, said: “The ISO disciplines help ensure safe and efficient operations at our facilities. This work is important in order to achieve a sustainable cost level, thus supporting long-term production on the NCS.”

According to Statoil, Bilfinger and Kaefer have been responsible for the ISO services on the installations where renegotiated framework agreements have now been signed since 2010. An exception from this is Draupner, where change of supplier opens for a more flexible utilization of resources across Sleipner Multifield.

In 2016, Statoil signed framework agreements with Beerenberg Corp and Prezioso Linjebygg for the other installations on the NCS and onshore plants, and has now covered its needs for ISO services at facilities currently on-line until 2030.

Offshore Energy Today Staff