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The Norwegian oil and gas company Equinor has awarded drilling services contracts worth NOK 2.5 billion ($286.7 million) in total to the oilfield services behemoths Schlumberger, Halliburton, Baker Hughes, and Weatherford, among others.
Contract signing / Photo by Kjetil Eide, Equinor
The services will be delivered to both new and existing fields on the Norwegian continental shelf. Contracts for services related to liner hangers were signed in Equinor’s digital laboratory at Forus, Stavanger, on 14 May. Contracts for additional completion and downhole monitoring have been signed earlier.
“These contacts will help us continue our safe and efficient drilling and well operations. The suppliers are specialists that we have worked with before, and we know what they stand for. We look forward to continuing our good cooperation,” says Geir Tungesvik, Equinor’s senior vice president, Drilling & Well.
The total contract value for these services is estimated at about NOK 2.5 billion for the 3-year fixed contact term. In addition, there are five 2-year options for all awards, Equinor said.
The contracts now signed cover niche deliveries complementing the integrated drilling and well service contracts signed in 2018.
“We have standardized the contract set-up between various suppliers. This simplifies collaboration and creates win-win solutions,” says Peggy Krantz-Underland, Equinor’s chief procurement officer.
Krantz-Underland has stressed that Equinor does not just buy services from the biggest suppliers only, “but also from small-size suppliers with the required specialist competencies.”
Apart from the quarter of U.S. oilfield services giants, the contracts have been awarded to Ramex, NOV Wellbore Technologies – NUF, Petroleum Technology Company, TCO AS, Interwell Norway AS, Welltec Oilfield Services (Norway), and Roxar Flow Management.
The services are key to capturing additional value on the Norwegian continental shelf, aiming to improve the recovery rate from 50 to 60 percent, Equinor said.
The services related to liner hangers and additional completion are based on framework contracts with standardized conditions where the volume may vary. The estimated value is one billion crowns for liner hangers and half a billion crowns for additional completion.
The downhole monitoring contracts were awarded in March, covering a predetermined scope at a value of about 1 billion crowns for for three years. |
