Equinor extends offshore oil field service contracts worth $1.75 billion, providing 2,000 jobs
(WO) – Equinor, on behalf of its partners, is exercising two options to extend contracts with Archer AS, KCA Deutag Drilling Norway AS and Odfjell Operations AS for a total of four years.
The options for drilling services on fixed installations on the Norwegian continental shelf provide jobs for 2000 people per year and have an estimated value of NOK 18.4 billion ($1.75 billion).
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.
In this option round, Equinor has conducted a limited competition evaluating drilling suppliers on certain fixed installations based on a combination of technical and commercial criteria.
This has resulted in some redistribution between these suppliers on four of the 19 installations in the contract portfolios.
The services they deliver to Equinor are drilling, completion, intervention services, plugging, maintenance and modifications on 19 of Equinor’s fixed installations. They also get support from sub-contractors for some of these services, generating additional jobs along the Norwegian coast.
“We know these suppliers well, and look forward to continued collaboration about safety improvements, energy management and operational efficiency. Through the various improvement activities, we aim to maintain the drilling activity on our fixed installations for many years to come,” says Erik G. Kirkemo, senior vice president for drilling & well operations.
The drilling contracts cover the following installations:
- Grane – Odfjell
- Gullfaks A, B & C – Archer
- Heidrun – KCAD
- Johan Sverdrup – Odfjell
- Kvitebjørn – KCAD
- Njord – KCAD
- Oseberg B, C, Sør & Øst – KCAD
- Sleipner A – Archer
- Snorre A & B – Archer
- Statfjord A, B & C – Archer
- Visund – Odfjell
