Turbo machinery agreements signed

July 13, 2007, 09:00 CEST

Statoil has signed frame agreements with the Dresser-Rand and Nuovo Pignone companies for new equipment, as well as the supply, modification and maintenance of turbo machinery on all Statoil-operated platforms and land plants.

The agreements are effective for five years from July 2007, with an option to extend for an additional five years. Options included, the agreements have an estimated total value of NOK 7.8 billion.

Dresser-Rand is a USA-based company with headquarters in Houston, Texas. In accordance with the agreement, the equipment it supplies will be produced in France, USA and Norway. The company's Kongsberg office will be the primary point of contact for the execution of contract. Italian Nuovo Pignone, owned by General Electric (GE), will handle the contract from Italy.

"These companies will be important partners in our work to increase energy efficiency and to reduce emissions from our facilities," says Rune Norseng, Statoil's vice president for procurements in operations support in the Exploration & Production Norway (EPN) business area.

"The frame agreements are a result of Statoil's best practice procurement (BPP) corporate initiative. The purpose of the initiative is to gather control of all procurements in Statoil into 64 group-wide equipment categories.

Several maintenance and service agreements for this area will be awarded after the summer.