• Natural Gas News

    Statoil Awards $1bn of Subsea Work

Summary

Statoil has awarded subsea maintenance framework agreements extending to 2023 to three contractors worth some $960mn, but if all options are included the amount is much greater.

by: Mark Smedley

Posted in:

Natural Gas & LNG News, Europe, Corporate, Exploration & Production, News By Country, Norway

Statoil Awards $1bn of Subsea Work

Statoil said December 14 it has awarded new subsea maintenance framework agreements extending to 2023 to Aker Solutions, TechnipFMC and OneSubsea worth a total estimated NKr 8bn ($960mn).

Aker Solutions said its share of these contracts out to 2023 was worth NKr 3bn, and would be booked in its 4Q2017 accounts. OneSubsea is a subsidiary of France-US services giant Schlumberger.

The overall contracts include five four-year options, for a total of 20 years (2024-2043), which if all exercised would bring their total inclusive value to the trio of contractors to some NKr 40bn.

The new agreements apply to Statoil-operated subsea wells on the Norwegian continental shelf with equipment from the aforementioned suppliers and include maintenance of equipment belonging to more than 500 wells. The company said these include planned wells in the field developments of Johan Castberg and Snorre Expansion Project (both mostly oil, with some associated gas mainly for oil uplift).

“Production from subsea wells constitutes a significant part of Statoil’s total volumes from the Norwegian continental shelf. The new framework agreements are therefore important to achieve a sustainable cost level and long-term production” said Kjetil Hove, senior vice president for operations technology.