Fluid and cement services contracts

June 30, 2006, 11:00 CEST

Statoil has awarded fluid service contracts to Halliburton, M-I Norge and Schlumberger Norge for a total value of NOK 1.7 billion.

The contracts’ duration is two years with extension options of three times two years. With the options included, the contracts have a total value of NOK 7 billion. They are among the largest fluid and cement contracts awarded in 2006 on a world scale and they have secured Statoil good prices in a pressured market.

“With this contract award, Statoil will secure itself capacity for fluid and cement services for the future,” says Anders Opedal, vice president for procurements in the drilling and well technology business unit in Technology and Projects (T&P).

The contracts cover delivery of drill fluid and handling of drilling waste, cement services, delivery of completion fluid as well as pumping services in connection with drilling and completion of wells on Statoil operated fields on the Norwegian continental shelf.

Halliburton has been awarded drill fluid, cement services and completion fluids contracts for fields that are supplied by the bases at Dusavik near Stavanger, Florø north of Bergen, Kristiansund in western Norway and Hammerfest in northern Norway.

Halliburton has also been awarded cement services and completion fluids contracts for the following fields in the North Sea supplied from the Ågotnes base near Bergen: Statfjord with satellites, Gullfaks satellites and Kvitebjørn. Additionally, the company has been awarded contracts for cement services in the Norne area of the North Sea which is supplied from Sandnessjøen in Nordland county. The Halliburton contracts, without options, have a total value in excess of NOK 1.2 billion.

M-I Norge has been awarded contracts for drill fluid for fields supplied from Ågotnes as well as completion fluids for the Gullfaks and Veslefrikk fields in the North Sea. The contract, without options, is worth around NOK 370 million.

Schlumberger Norge has been awarded a contract for cement services for the Gullfaks A, B and C platforms and Veslefrikk field. The contract’s value, without options, is around NOK 75 million.