Awarding contracts worth NOK 2.5 billion

May 14, 2019 13:19 CEST
Photo of the participants at the contract signing.
From the left: Chris Jones, Europe OFS leader, Peggy Krantz-Underland, SVP Supplier Chain (/Anskaffelser), Jan Erik Klungtveit, business development manager, Geir Tungesvik, SVP Drilling & Well and Geir Egil Olsen, director Weatherford. (Photo: Kjetil Eide / Equinor ASA)

Equinor has awarded drilling service contracts at a total value of about NOK 2.5 billion, exclusive of options, to several suppliers. The services will be delivered to both new and existing fields on the Norwegian continental shelf.

Contracts for services related to liner hangers were signed in Equinorā€™s digital laboratory at Forus, Stavanger, on 14 May. Contracts for additional completion and downhole monitoring have been signed earlier.

ā€œThese contacts will help us continue our safe and efficient drilling and well operations. The suppliers are specialists that we have worked with before, and we know what they stand for. We look forward to continuing our good cooperation,ā€ says Geir Tungesvik, Equinorā€™s senior vice president, Drilling & Well.

The total contract value for these services is estimated at about NOK 2.5 billion for the 3-year fixed contact term. In addition, there are five 2-year options for all awards.

Niche deliveries
The contracts now signed cover niche deliveries complementing the integrated drilling and well service contracts signed in 2018.

ā€œWe have standardised the contract set-up between various suppliers. This simplifies the collaboration and creates win-win solutions. For these services, we do not buy services from the biggest suppliers only, but also from small-size suppliers with the required specialist competencies,ā€ says Peggy Krantz-Underland, Equinorā€™s chief procurement officer.

The services are key to capturing additional value on the Norwegian continental shelf, aiming to improve the recovery rate from 50 to 60 percent.

Three services
The services related to liner hangers and additional completion are based on framework contracts with standardised conditions where the volume may vary. The estimated value is NOK one billion and NOK half a billion respectively for three years.

The downhole monitoring contracts were awarded in March, covering a predetermined scope at a value of about NOK 1 billion for three years.

Contracts:

Liner hangersā€Æ 

Additional completionā€Æ 

Downhole monitoring

Halliburton ASā€Æ 

Halliburton ASā€Æ 

Halliburton ASā€Æ 

Schlumberger Norge AS *ā€Æ 

Schlumberger Norge ASā€Æ 

Schlumberger Norge ASā€Æ 

Baker Hughes Norge ASā€Æ 

Baker Hughes Norge ASā€Æ 

Baker Hughes Norge ASā€Æ 

Weatherford Norge ASā€Æ 

Weatherford Norge ASā€Æ 

Roxar Flow Measurement ASā€Æ 

ā€Æ 

Ramex ASā€Æ 

Weatherford Norge ASā€Æ 

ā€Æ 

NOV Wellbore Technologies - NUFā€Æ 

ā€Æ 

ā€Æ 

Petroleum Technology Company ASā€Æ 

ā€Æ 

ā€Æ 

TCO ASā€Æ 

ā€Æ 

ā€Æ 

Interwell Norway ASā€Æ 

ā€Æ 

ā€Æ 

Welltec Oilfield Services (Norway)ā€Æ 

ā€Æ 


* Schlumberger has signed a letter of intent for services related to liner hangers. The final contract is scheduled to be signed at a later stage.

About the servicesā€Æ
Liner hangers reduce the length of the last liner set in the well by several hundred meters by allowing the liner to be suspended below the ground, rather than extending a single casing string to the top of the wellbore. This saves metal/cementing costs and time for rig and personnel.

Additional completion is a collective term for equipment and service deliveries that help prepare the well for production.

Downhole monitoring ā€“ technologies that use an electric or fibre-optic cable run through the well, with a gauge at the bottom measuring pressure and temperature. It is not possible to complete the well without this technology.

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