Frame agreement for subsea equipment

August 24, 2007, 09:30 CEST

The deals are worth between NOK 15 and 25 billion in total.

The contracts signed with the two supplier companies cover the deliveries of additional equipment for existing facilities, supply of new subsea field installations and operations maintenance of these. An agreement has also been signed with Vetco Gray Scandinavia for supply of additional equipment.


The contracts' coverage includes supply of new subsea field installations. (Photo: Marit Hommedal)

Valid for five years with options of two times two years for the euipment agreements, they first and foremost cover needs on the Norwegian continental shelf (NCS). They can however also be utilised in relation to international development projects.

The signing is part of Statoil's comprehensive review and renewal of contracts in the Best practice procurement corporate initiative.

"We've been offered competitive terms in a pressured market," says Tore Tveit, project manager in Technology & Projects (T&P).

"For Statoil and the licenses it's very important to have the system of agreements in place. This gives us shorter lead times and assured deliveries when a project is sanctioned."

Atle Rettedal, acting senior vice president for facilities technology in T&P, emphasises that the new deals are a boost for both Statoil and suppliers.

"The suppliers find it attractive working with Statoil because the company is leading in employing new technology," says Mr Rettedal.

"An example of this is the Tordis improved oil recovery (IOR) development project, where Statoil is utilising subsea separation. Another is subsea boosting (SeaBooster) support at Tyrihans, also an IOR project. These deals are based on the best experience in these areas."

Service agreements have also been renegotiated for all Statoil-operated fields on the NCS. New ones will be signed with the three suppliers, with improvements made to the present system of agreements. Statoil's ambition is to have one contract per supplier applicable to all fields. These also cover service of supplied equipment.

The contracts will be signed and effective from the second half of September 2007.