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Contracts encourage greener profile

July 28, 1999, 10:00 CEST

Incentives for drilling and well service contractors to achieve environmental gains are built into a series of recent jobs awarded by Statoil.

These new contracts are framed so that both contractor and operator can achieve better commercial and operational results while reducing the burden on the environment.

Their terms include direct incentives to improve earnings for contractors who re-use chemicals. The greater the recycling, the better the return.

To ensure that environmental goals are reached, emphasis is also placed on suppliers being able to measure the volume of waste at source as well as re-using fluids and recycling materials rather than destroying or depositing them.

The contracts encourage teamwork and collaboration based on mutual trust between Statoil and relevant suppliers of fluid services.

Under the title Nearer the Uncompromising Lowest Level (Null), a separate project team has been established by the group to ensure that its goals are reached in the contract period.

"These assignments mean that both sides earn better, while we reach our environmental targets," explains project manager John Eirik Paulsen.

Earlier practice often meant that the only way a contractor could make a profit was to maximise the sale of chemicals. The latest Statoil service contracts introduce a completely new mindset in the industry.