Equinor is extending key supplier agreements for drilling and well services with a combined value of around NOK 17 billion. The agreements will maintain production from the Norwegian continental shelf, ensure high activity and contribute to stable energy supplies to Europe.

Equinor is exercising one-year options under the three contracts for integrated drilling and well services, as well as two-year options under the 18 corporate framework agreements for specialist services linked to these deliveries.

The integrated drilling and well services agreements are valued at NOK 8.3 billion, while the corporate framework agreements for specialist services are estimated at approximately NOK 4.3 billion per year over two years.

Baker Hughes Norge AS, Halliburton AS and SLB Norge AS have been awarded the contracts for integrated drilling and well services.

The same companies, together with a further 15 suppliers, have also been awarded corporate framework agreements for specialist services. The framework agreements for specialist services will ensure access to the necessary expertise and technology to carry out well operations more efficiently and adapt to changing needs on the shelf.

'These agreements are among the largest we have, and they are crucial for activity on the Norwegian continental shelf. New wells enable us to maintain high production and deliver stable energy to Europe. This is particularly important at a time of turbulence in the energy markets,' says Jannicke Nilsson, chief procurement officer.

The agreements will employ around 2,500 people and cover activity on both fixed installations and mobile rigs on the Norwegian continental shelf.

On a more mature shelf, drilling and wells operations are becoming increasingly important to sustain production. Equinor’s ambition is to maintain production towards 2035 at around 1.2 million barrels of oil equivalent per day.

'New wells are expected to account for around 70 percent of Equinor’s production in 2035. This involves both more wells and more well interventions, which must be delivered faster and significantly more cost-efficiently than today. That requires closer collaboration with the supplier industry and increased use of technology and standardisation,' says Rune Nedregaard, Equinor’s senior vice president for wells.

'We are now moving to a greater extent towards industry standards. Together with our suppliers, we will use this to simplify work processes, reduce costs and increase pace, while maintaining safety,' Nedregaard continues.

Drilling and well service agreements

Baker Hughes: Grane, Oseberg B - C - Øst - Sør, Visund A*, Heidrun*, Askepott*, Johan Sverdrup DP, Deepsea Bergen, Transocean Encourage, COSL Promoter, Transocean Norge* and Transocean Spitsbergen*

Halliburton: Askepott*, Njord A, Heidrun*, Snorre A - B, Kvitebjørn*, Shelf Drilling Barsk*, Transocean Enabler*, Transocean Spitsbergen* and Transocean Enabler

SLB: Gullfaks A - B - C, Kvitebjørn*, Statfjord A - B - C, Visund A*, Deepsea Stavanger, Askeladden, Shelf Drilling Barsk*, Deepsea Aberdeen, COSL Innovator, Transocean Norge* and Transocean Spitsbergen*

* Shared delivery

Awarded corporate framework agreements for specialist services:

Weatherford Norge AS, Roxar Flow Measurement AS, Archer Oiltools AS, Interwell Norway AS, NOV Wellbore Technologies NUF, Welltec Oilfield Services AS, Ramex AS, TCO AS, Silixa Limited, Tendeka AS, Sekal AS, Expro Norway AS, Enventure Global Technology LLC, Coretrax Americas Limited and Corpro Systems Ltd.

Original announcement link

Source: Equinor