Awarding drilling and well service contracts worth NOK 30 billion

June 18, 2018 08:30 CEST | Last modified June 18, 2018 11:09 CEST
The Grane platform
The Grane platform in the North Sea. (Photo: Harald Pettersen / Equinor ASA)

Equinor is awarding new service contracts to Baker Hughes Norge, Halliburton AS and Schlumberger Norge AS for integrated drilling and well services on most of the Equinor-operated fields on the Norwegian continental shelf. Initially awarded for four years, the contracts have a total estimated value of some NOK 30 billion. 

The contracts include options for five 2-year extensions. Extension of the contracts is subject to continuous achievement of the goals for well deliveries.

“This is a great day for Equinor and the Norwegian continental shelf. The contracts are the biggest we have ever awarded within drilling and well service. The integrated delivery model we have chosen will strengthen the interaction between the service supplier, rig supplier and operator, enabling us to drill more wells. This, in turn, will enhance recovery and ensure long-term operations,” says Pål Eitrheim, Equinor’s chief procurement officer.

The purpose of integrated drilling and well services is to clarify roles and responsibilities. This results in less interfaces and more clearly defined responsibilities, facilitating more seamless planning and implementation of the operations between the various contributors.

Building on experience

“The collaboration model has already been tested out for Johan Sverdrup Phase 1, Aasta Hansteen, Mariner and the Askeladd and Askepott Cat J rigs with very good safety and efficiency results,” says Geir Tungesvik, senior vice president, drilling & well.

The new contracts will create jobs for some 2000 people on 17 fixed platforms and eight mobile rigs. They replace the current service contracts, which expire on 31 August. The contracts aim at new ways of collaborating, giving the service suppliers greater responsibility for services than before. Support from land will be essential to successful implementation of integrated operations. For mobile units the service contracts will be linked to the rig rather than the various licences.

“The service supplier, rig supplier and Equinor will collaborate as a team, and together decide how to best solve the tasks. We have common drivers to help us achieve our aims, and we are willing to reward good performance, because it helps us increase profitability. The principle of the collaboration model is to always operate according to best practice, learn across operations and leverage lessons learned for continuous improvement,” says Tungesvik.

The contracts include the following services for well construction:

  • Integrated drilling services
  • Cementation and pumping
  • Drilling and completion fluids
  • Electrical logging
  • Completion

The press is invited to attend the contract signing in Equinor’s main office in Stavanger Monday 18 June at 10:00.

Meeting time: 09:45

Meeting place: Reception Equinor Business Centre

Attendants:

  • Pål Eitrheim, chief procurement officer, Equinor
  • Geir Tungesvik, senior vice president drilling& well, Equinor
  • Christopher W. Jones, Europe oilfields services leader, Baker Hughes GE
  • Sanjeev Verma, vice president Norway operations, Halliburton
  • Atle Nottveit, geomarket manager Scandinavia, Schlumberger

To register to the contract signing ceremony contact Morten Eek meek@equinor.com.

Awarded contracts:

 

 

Installations

 

 

 

 

Field 

 

 

 

 

Awarded to

 

 

 

 

Comments 

 

 

 

 

Songa Enabler

 

 

 

 

Trestakk, Johan Castberg 

 

 

 

 

Halliburton

 

 

 

 

The service contract for Trestakk has been awarded earlier. 

 

 

 

 

Songa Encourage, Njord A, 

 

 

 

 

Åsgard, Heidrun subsea, Norne, Njord 

 

 

 

 

Halliburton

 

 

 

 

Njord is subject to partner approval 

 

 

 

 

Heidrun A

 

 

 

 

Heidrun 

 

 

 

 

Halliburton

 

 

Baker Hughes GE 

 

 

 

 

Halliburton delivers drilling, fluid and cementing services. 

 

 

Baker Hughes GE delivers upper completion. 

 

 

 

 

Snorre A og B, Transocean Spitsbergen

 

 

 

 

Snorre A og B, Snorre Expansion Project 

 

 

 

 

Halliburton

 

 

 

 

 

 

 

 

 

Songa Equinox,

 

 

Songa Endurance, 

 

 

COSLPromoter

 

 

 

 

Troll oil wells, Troll phase 3 

 

 

 

 

Baker Hughes GE

 

 

 

 

 

 

 

 

 

Oseberg B, C, East, South

 

 

 

 

Oseberg field wells 

 

 

 

 

Baker Hughes GE

 

 

 

 

 

 

 

 

 

Grane A

 

 

 

 

Grane 

 

 

 

 

Baker Hughes GE

 

 

 

 

 

 

 

 

 

Gullfaks A, B og C 

 

 

 

 

Gullfaks field wells 

 

 

 

 

Schlumberger

 

 

 

 

 

 

 

 

 

Kvitebjørn A

 

 

 

 

Kvitebjørn field wells 

 

 

 

 

Schlumberger 

 

 

Halliburton 

 

 

 

 

Schlumberger delivers drilling, fluid and cementing services. 

 

 

Halliburton delivers upper completion. 

 

 

 

 

Statfjord A, B og C

 

 

 

 

Statfjord, Sleipner A 

 

 

 

 

Schlumberger

 

 

 

 

 

 

 

 

 

Visund A, Mærsk Integrator

 

 

 

 

Visund, Gina Krog 

 

 

 

 

Schlumberger

 

 

Baker Hughes GE 

 

 

 

 

Schlumberger delivers drilling, fluid and cementing services. 

 

 

Baker Hughes GE delivers upper completion. Gina Krog is subject to partner approval. 

 

 

 

In addition, a letter of intent has been signed with Schlumberger for a future exploration rig not yet chartered by Equinor. At the same time negotiations of contracts for drilling and well services associated with two mobile rigs are in progress.

International awards:

 

 

Installations

 

 

 

 

Field 

 

 

 

 

Awarded to

 

 

 

 

Comments 

 

 

 

 

Peregrino A, B and C

 

 

 

 

Peregrino 

 

 

 

 

Schlumberger

 

 

 

 

Awarded integrated drilling services for Peregrino phase 1 and 2 

 

 

 

 

Mariner A, Noble Lloyd Noble

 

 

 

 

Mariner 

 

 

 

 

Schlumberger

 

 

 

 

Letter of intent issued for integrated drilling and well services  

 

 

 

Previously awarded service contracts:

 

 

Installations

 

 

 

 

Field 

 

 

 

 

Awarded to

 

 

 

 

Comments 

 

 

 

 

Deepsea Atlantic

 

 

 

 

Johan Sverdrup Phase 1, Tune, Utgard, Visund Nord 

 

 

 

 

Baker Hughes GE

 

 

 

 

Service agreements not yet awarded for future rig 

 

 

 

 

Aasta Hansteen

 

 

 

 

Aasta Hansteen 

 

 

 

 

Halliburton

 

 

Baker Hughes GE 

 

 

 

 

Halliburton delivers drilling, fluid, and cementing services.

 

 

Baker Hughes GE delivers upper completion. 

 

 

 

 

Askeladden

 

 

 

 

Gullfaks 

 

 

 

 

Schlumberger

 

 

 

 

 

 

 

 

 

Askepott

 

 

 

 

Oseberg  

 

 

 

 

Baker Hughes GE

 

 

 

 

 

 

 

 

 

Martin Linge

 

 

 

 

Martin Linge 

 

 

 

 

Schlumberger

 

 

 

 

 

 

 

Contract signing ceremony

 

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