Norway’s state-owned Equinor is extending integrated drilling and specialist well services contracts worth a combined Nkr20 billion (US$2.09 billion) with players including Baker Hughes, Halliburton and Schlumberger for its operated fields on the Norwegian continental shelf.
Equinor is also extending its contracts for additional services with the trio and 13 other suppliers — the contracts will apply for two years from 1 June 2022.
The contract extension for drilling services has an estimated total value of approximately Nkr14 billion and will provide 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 almost Nkr6 billion by Equinor. These specialist services will employ some 600 people.
Value creation on the NCS
“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,” said Equinor’s chief procurement officer Mette Ottoy.
“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 Norwegian continental shelf.”
In 2018 Equinor's drilling services were merged into a single contractual 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,” commented Erik Kirkemo, Equinor’s senior vice president for drilling and well operations.
“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,”
Baker Hughes will supply drilling services to assets and facilities including Johan Sverdrup, Grane A and Oseberg B and C, while Halliburton will work on the Njord A, Heidrun A and Snorre A and B platforms.
Schlumberger will be active on the Gullfaks A, B and C and Kvitebjorn A platforms.
The other contractors that saw their contracts extended by Equinor are Weatherford, Ramex, NOV Wellbore Technologies, Petroleum Technology Company, TCO, Interwell, Welltec Oilfield Services, Roxar Flow Measurement, Sekal, Archer Oiltools, Silixa, Tendeka and Ardyne.
The specialist services being provided 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.