Equinor said it would extend a series of framework agreements covering maintenance and modification services for its onshore and offshore installations.
Valued at 11.5 billion NOK (£960 million), the Norwegian energy giant said the extensions would see it continue contracts with Aibel, Apply, Aker Solutions and Wood Group Norway.
Contracts will be extended by three years, and will “continue creating significant ripple effects across the country,” it added.
The agreements were signed in 2016 and apply where Equinor is the operator or technical service provider.
The options are exercised for three years from 1 March 2023 and all will cover the same scopes of work. Equinor said this would be the last options of these contracts.
“We are pleased about continuing the good cooperation we have had with our suppliers. By exercising the options we can build on the suppliers’ knowhow of our installations and quickly test new cooperation models to achieve results,” commented chief procurement officer Mette H. Ottøy.
“We will encourage a reduction in CO2 emissions and costs through simplification, standardisation, smart solutions and competitive local deliveries that will contribute to local ripple effects. The overall goal is that the enhanced cooperation will improve safety and produce results that will benefit both parties,” she said.
Wood said its contract extension was valued at around $170m (£125m), and will continue an existing multi-asset framework agreement initially awarded in 2015.
It will work with Equinor on operations across Snorre A, Snorre B, Grane, Visund and Martin Linge assets, while improving efficiency and evaluating opportunities to decarbonise production, it said.
The company’s VP of Norway operations, Lars Fredrik Bakke, added: “Our relationship with Equinor is a real pride point in our portfolio and I am energised by the opportunity to continue to build on our collective success to date.
“With more than 400 Wood employees supporting the operations of these assets, this three-year extension provides job security as well as further opportunities to increase the efficiency and productivity of these important assets.”
Wood said the work would continue to be delivered by its existing teams across Norway, with support from the other global locations.
Record earnings
Earlier this week Equinor hailed “record adjusted earnings” in Q4 of 2021 as European energy prices reached unprecedented levels.
The Norwegian oil giant posted adjusted earnings of $15 billion in the quarter, up from $760m in the same period last year. After tax, that’s $4.4bn, up from a loss of $550m.
For the full year of 2021, Equinor enjoyed pre-tax profits of $31.5bn, reversing a $4.2bn loss in 2020, adding to the tally of energy giants posting hefty earnings.
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