Extending Contracts for Drilling and Specialist Services Worth NOK 20Bn

Equinor is extending its contracts with Baker Hughes Norge, Halliburton AS and Schlumberger Norge AS for integrated drilling and well services on Equinor-operated fields on the Norwegian continental shelf (NCS).

At the same time the company is extending its contracts for additional services with the same companies and 13 other suppliers. The contracts will apply for two years from 1 June.

 The contract extension for drilling services has an estimated total value of approximately NOK 14 billion and will give work to around 2000 people distributed on 18 fixed platforms and 12 mobile rigs.

The total value of specialist services in the same period is calculated at close to NOK 6 billion. The specialist services will employ some 600 people.

“Long-term supplier relations have proved to be important in an industry swaying rapidly between good and more challenging times. It ensures predictability and is important to develop this industry in a safe, efficient and sustainable way. We are pleased to extend these contracts, and it’s an expression of the good collaboration with our suppliers. These contracts are central in our value creation on the NCS,” says Mette H. Ottøy, chief procurement officer.

 In the drilling service contracts established in 2018 the services were gathered in one contract format, giving one supplier the main responsibility for integrated drilling services, cementing and pumping, drilling and completion fluids, electrical logging and completion on each installation.

“We see clear benefits from integrated contracts. They have been fundamental to modernise the way we work, both by the establishment of operations centres, solving tasks jointly across disciplines and applying new technologies for close communication between the offshore and onshore organisations. The integrated contracts are well complemented by the framework contracts for specialist services. We are well pleased with the contracts we are extending, and look forward to continuing our joint improvement work,” says Erik G. Kirkemo, Equinor’s senior vice president for drilling & well operations.

Drilling service contracts

• Baker Hughes: Grane A, Oseberg B - C - East - South, Transocean Equinox, Transocean Endurance, Noble Lloyd Noble*, Visund A*, Deepsea Atlantic, Rowan Stavanger, Heidrun A*, Askepott and Johan Sverdrup*
• Halliburton: Njord A, Heidrun A*, Snorre A - B, Kvitebjørn A*, Noble Lloyd Noble*, Transocean Enabler*, Transocean Encourage and Transocean Spitsbergen
• Schlumberger: Gullfaks A - B - C, Kvitebjørn A*, Statfjord A - B - C, Visund A*, Deepsea Stavanger, Askeladden, Noble Lloyd Noble*, COSL Promoter, Deepsea Aberdeen, Johan Sverdrup* and Transocean Enabler*

* Shared delivery

The specialist service contracts will be extended with the following suppliers:
Halliburton, Schlumberger, Baker Hughes, Weatherford, Ramex, NOV Wellbore Technologies, Petroleum Technology Company, TCO, Interwell, Welltec Oilfield Services, Roxar Flow Measurement, Sekal AS, Archer Oiltools, Silixa, Tendeka and Ardyne.

The specialist services include electrical submersible pumps, downhole monitoring, tubing conveyed perforation, wired drill pipe, liner hanger, additional completion equipment and services, sand screens, fibre optics, fishing services, downhole mechanical isolation, multilateral technology, coring services, one trip steerable drilling liner system, and expandable hydraulic screens.