Statoil hands out service contracts for seven bases

Statoil has today, January 7, awarded the service contracts for seven bases for the company in Norway. These contracts have been awarded to NorSea Group AS, Saga Fjordbase AS and Asco Norge AS.

The contracts awarded include terminal and warehouse services as well as storage and pipeline handling.

“These contracts, which will involve a long-term cooperation with the chosen suppliers, will result in great savings for Statoil’s logistical operations. Logistics represent some 10% of our field costs and making base operations more efficient is essential for extending the lifetime of the fields we operate,” says Astrid Sørensen, SVP for operations in Statoil.

The contracts, which in total are valued at roughly NOK 5 billion ($641.2 million) over a 10-year period, will therefore ensure a high level of activity and value creation over a lengthy period.

“Services at all seven bases in Norway have for the first time been subject to tender at the same time, and it has been good to see many companies making bids. The results of the tender establish the basis for safe and efficient operations at Statoil’s coastal bases in the years ahead,” adds Sørensen.

NorSea Group AS has been awarded the contract for terminal and warehouse services, plus storage and pipeline handling, at Dusavik in Rogaland, Kristiansund in Møre and Romsdal and Hammerfest in Finnmark, as well as terminal and warehouse services at Mongstad and Ågotnes in Hordaland and warehouse services, plus storage and handling of pipelines in Florø in Sogn and Fjordane.

“Statoil and the industry are in a situation where we have to reduce our costs and increase operational efficiency.”

Saga Fjordbase AS has landed the contract for terminal services at Florø in Sogn and Fjordane, while Asco Norge AS has been awarded the contract for terminal and warehouse services, plus storage and pipeline handling, at Sandnessjøen in Nordland.

“In addition, Statoil is taking several steps to increase the efficiency of the logistics chain between the coastal bases and our offshore installations. We will be achieving considerable economies of scale and synergies by introducing new sailing schedules for the supply of our offshore installations and a greater degree of specialisation at the different bases in the forthcoming contract period. The aim is to ensure long-term activity and value creation on the Norwegian continental shelf.”

The contracts will have a duration of six years and will start up on July 1, 2015. They also include options for an extension of two plus two more years, so that they will have a duration of 10 years should all the options be exercised.

“During the second half of 2014 we completed a thorough bid process in which price, quality and technical competency were carefully evaluated. The bid process gave participants the opportunity to offer their services. Statoil and the industry are in a situation where we have to reduce our costs and increase operational efficiency. These new base contracts will make a significant contribution here,” says Jon Arnt Jacobsen, SVP for the supply chain.