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Frame agreement on pipeline coating services

July 6, 2007, 11:30 CEST

Statoil has signed frame agreements with three companies for pipeline coating services relating to its pipeline projects.

The Norwegian Bredero, Italian Socotherm and French Eupec companies have been awarded the five-year contracts, with options of two times two years. Based on the present project portfolio, their value is estimated at NOK 3 billion.

The deals cover concrete weight coatings for steel piping and anti-corrosion and thermal insulation coatings. Concrete weight coatings form the bulk of the deals' scope.

The agreements are a result of Statoil's best practice procurement (BPP) corporate initiative in which all Statoil procurements are gathered under 64 group-wide equipment categories.

Bredero has previously been the sole supplier of concrete weight coating services in relation to Statoil's pipeline projects.

"With Statoil now establishing competition for this type of service as well, it is in accordance with the group and European Union's purchasing regulations of competition being key," says Odd Kristian Nøland, who heads the steel unit in the Technology & Projects business area.

In the time ahead, Statoil will have a need for big project-related deliveries, such as on the Gjøa and Snøhvit fields.

"The greatest need will however be in relation to future development of infrastructure for gas deliveries to the continent," says Mr Nøland.