Statoil hands out supply vessel contracts to five shipowners

Norwegian oil major Statoil has awarded contracts to five shipowners, covering seven supply vessels, at a total contract value of NOK 3.1 billion ($367.4M), including options.

All vessels will be equipped with hybrid battery operation, and the possibility of shore power connection, the oil company stated on Wednesday.

“We look forward to a long-term cooperation with the chosen shipowners. The contracts will bring predictability to both the shipowners and Statoil, and will allow us to focus on optimizing our operations to continuously improve operation, safety and energy efficiency,” says Philippe F. Mathieu, senior vice president for joint operations support in Statoil.

The seven supply vessels will operate from the supply bases at Mongstad, Dusavik, Florø and Kristiansund.

“The bidding process has attracted high attention, and we have received bids for around 50 vessels from many competent and highly qualified shipowners. We require the crew on all vessels to speak one of the Scandinavian languages,” says Mathieu.

Long-term contracts

Four of the contracts have a duration of five years, plus five one-year extension options and three of the contracts have a duration of three years, plus three one-year extension options.

Five-year contracts, including five one-year extension options, have been awarded to Skansi Offshore and its Sjoborg vessel; to DOF’s Skandi Mongstad and Skandi Flora, as reported earlier by Offshore Energy Today; and to Solstad Farstad’s Far Searcher, as reported on Tuesday.

The three-year contracts, including three one-year extension options, have been awarded to Ugland and its vessel Juanita and, as reported earlier on Wednesday, to Havila’s two vessels, Havila Foresight and Havila Charisma.

Including its current vessels, Statoil has 16 supply vessels on long-term contract with 10 different shipowners. Statoil noted it will still need the spot market after these awards, but the need will vary from day to day.

Conversion to battery operation

Targeting carbon-efficient oil and gas production, Statoil is also focusing on reducing emissions from its logistics activities.

Frida Eklöf Monstad is head of Statoil’s marine unit in the company’s logistics activities, and has with her colleagues, worked extensively with the shipowners to reduce fuel consumption and emissions.

“Since 2011 we have reduced CO2 emissions from our vessel portfolio on the Norwegian continental shelf (NCS) by close to 30%, and together with the shipowners we want to further reduce our climate footprint. Vessels that can demonstrate low fuel consumption have therefore been successful in this award. Based on our experience battery operation has a good impact on consumption and emissions, and we are pleased that all vessels awarded long-term contracts with us today will be equipped for battery power and shore power,” says Monstad.

None of the vessels awarded contracts currently have a system for battery-operation or shore power. This equipment will however be installed, and the NOx fund is a key support player and contributor to the shipowners in their effort of installing batteries.

The vessels will have Battery Power Notation, which allow them to achieve savings in fuel consumption while working in dynamic positioning alongside the installations. Statoil already has two battery-operated vessels on contract.