Statoil has awarded contracts for drilling services on 18 fixed installations on the Norwegian Continental Shelf (NCS). The contracts, representing a total of NOK 30 billion (approximately US$5.05 billion), represent the largest contract award by Statoil on the NCS since 2010. KCA DEUTAG, Odfjell Drilling and Archer were awarded the contracts encompassing drilling of new wells, plugging of old wells, workover and maintenance of drilling facilities on 18 of Statoil’s 20 fixed platforms on the NCS.
“Efficient drilling and well services on existing fields are important to maintain production on the NCS and to deliver according to Statoil’s production forecast of 2.5 million boe/day in 2020,” said Margareth Øvrum, executive vice president for technology, projects and drilling.
The duration of the contracts is four years plus options for three two-year extensions, totaling 10 years. The work will employ approximately 2,000 people during the period.
This contract provides a long-term perspective on drilling services for both Statoil and the supplier industry going forward. “Safe and efficient drilling operations are fundamental for Statoil and the suppliers play a key role in this regard,” says Øystein Arvid Håland, senior vice president for the drilling and well cluster in Statoil.
“They are the ones who carry out all the drill floor operations, which must be done in a safe and good manner every day,” he continued. “The suppliers we have chosen have over time demonstrated a will and ability to meet Statoil’s strict requirements for health, safety and environment.”
The companies were awarded contracts on the following installations:
- KCA DEUTAG: Gullfaks A, B, C; Oseberg B, C, Sør, Øst;
- Odfjell Drilling: Snorre A, B; Sleipner A; Heidrun; Njord; Visund; Grane; Brage;
- Archer: Statfjord A, B, C.
Replacing the existing contracts, the new contracts will come into effect in October 2012.