Norwegian oil giant Equinor has extended drilling contracts with three firms, including Aberdeen’s KCA Deutag, in a move it claims will maintain 2,000 jobs.
The deals combined are valued at NOK 18.4 billion (£1.34bn) and concern operations in Norwegian waters.
The Aberdeen drilling firm has shared that it has secured new contracts and extensions worth a total value in excess of $450 million (£351.8m).
Ole Maier, president of offshore for KCA Deutag, commented: “This award of an additional scope as well as a contract extension underscores the strong performance of our teams in Norway and our dedication to delivering innovative solutions and technology that improve the efficiency and safety of Equinor’s operations.
“We look forward to the continuation of our successful collaboration with Equinor as we collectively strive to ensure a safe and sustainable energy future.”
The Aberdeen firm will continue to work across the Oseberg and Kvitebjørn fields and has been awarded additional work to deliver drilling, maintenance and engineering services to the Njord and Heidrun platforms.
In addition to the deal with KCA Deutag, Archer AS and Odfjell Operations AS were also awarded contract extensions.
The contracts were signed in 2018 with three option periods of two years. The first two-year option was exercised in 2022. The new contract period runs for four years from 1 October 2024.
Equinor has conducted a limited competition evaluating drilling suppliers on certain fixed installations based on a combination of technical and commercial criteria.
The firm has said this resulted in some redistribution between these suppliers on four of the 19 installations in the contract portfolios.
Dag Skindlo, chief executive of Archer, said: “Archer remains the largest platform drilling services provider for Equinor with close to 50 percent of the platforms offshore Norway. This contract underlines our ability to deliver safe and efficient platform drilling operations.”
Under the contract, Archer will provide platform drilling services to nine out of Equinor’s 19 installations on the Norwegian continental shelf.
The firm will service Gullfaks A, B and C, Sleipner A, Snorre A and B, and Statfjord A, B and C.
Commenting on the three new contract extensions, Mette H. Ottøy, Equinor’s chief procurement officer added: “We appreciate the good collaboration we have had with these suppliers for many years, and have therefore added a fourth option of two years in addition to those agreed in the original contracts.
“This will help ensure predictability and form the basis for continuous improvements over time. This is a clear signal that we have long-term plans for cooperation with all three suppliers.”
Recommended for you
