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Contracts extended

March 18, 2003, 00:45 CET

More than 20 companies have had existing frame agreements with Statoil extended in a series of contracts worth some NOK 12.5 billion in total.

These deals relate to marine operations, including pipelaying, as well as to deliveries of steel and anodes, and to engineering work.

They extend contracts originally awarded in 2000, explains Odd Nøland, procurement vice president in the project execution unit of Exploration & Production Norway.

Due to last until 2006, work under the agreements is now being tied to new projects such as Snøhvit, Ormen Lange and Visund.

Companies with renewed deals for marine operations include Technip Offshore Norge, Allseas, Subsea 7, Saipem, Stolt Offshore, Nexans Norway and Aker Marine Contractors.

Europipe, Mitsui-Sumitomo, Ilva, Mitsubishi, Tenaris and Marubeni-Itochu have extended contracts for delivering steel pipe to pipeline projects.

Agreements covering cathodic protection of pipelines have been given longer life for Trident Alloys and Jotun Cathodic Protection.

And frame contracts covering engineering services have been renewed with ABB, Det Norske Veritas, Brown & Root, Snamprogetti, Rambøll, Reinertsen Engineering and Kværner Prosess.

Under the deals, the various suppliers must compete for each new assignment.

“We opted to continue with frame agreements because they help to make the project development process more efficient from the early phase to the production stage,” says Mr Nøland.

“Another advantage is that they permit further development of cooperation between client and contractor.”

He adds that the agreements simplify work processes for both sides, while ensuring priority and competitive prices for Statoil.

And they contribute to continuous improvements in health, safety and the environment.

The companies involved hail from Norway, Denmark, Switzerland, Italy, the UK, Germany, the Netherlands and Japan.