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    Equinor Awards $3.7bn in Contracts

Summary

The new contracts are intended to foster more co-operation. leading to more wells at better value.

by: William Powell

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Complimentary, Natural Gas & LNG News, Europe, Corporate, Exploration & Production, Contracts and tenders, News By Country, Norway

Equinor Awards $3.7bn in Contracts

Norwegian operator Equinor is awarding new service contracts to Baker Hughes, Halliburton and Schlumberger for integrated drilling and well services on most of its operated fields on the Norwegian continental shelf, it said June 18. Initially awarded for four years, the contracts have a total estimated value of some Nkr 30bn ($3.7bn). 

The contracts include options for five two-year extensions. Extension of the contracts is subject to continuous achievement of the goals for well deliveries.

“This is a great day for Equinor and the Norwegian continental shelf. The contracts are the biggest we have ever awarded within drilling and well service. The integrated delivery model we have chosen will strengthen the interaction between the service supplier, rig supplier and operator, enabling us to drill more wells. This, in turn, will enhance recovery and ensure long-term operations,” said chief procurement officer Pal Eitrheim.

“The collaboration model has already been tested out for Johan Sverdrup Phase 1, Aasta Hansteen, Mariner and the Askeladd and Askepott Cat J rigs with very good safety and efficiency results,” Equinor said.

The new contracts replace the current service contracts, which expire on 31 August. The contracts aim at new ways of collaborating, giving the service suppliers greater responsibility for services than before. “The service supplier, rig supplier and Equinor will collaborate as a team, and together decide how to best solve the tasks. We have common drivers to help us achieve our aims, and we are willing to reward good performance, because it helps us increase profitability. The principle of the collaboration model is to always operate according to best practice, learn across operations and leverage lessons learned for continuous improvement,” said Equinor.