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Frame agreements for pipe

October 30, 2001, 09:00 CET

Statoil has entered into frame agreements with Scandinavian Fittings and Flanges (SFF) and the Bergen Rørhandel/Stavanger Rørhandel joint venture for the supply of pipe.

The agreements, which were signed on 29 October, cover the supply of pipe and pipe fittings for offshore development projects, land facilities and major modification projects.

Calculations show that Statoil will require pipe and fittings worth almost NOK 1.4 billion over the next six years.

The new frame agreements are valid for two years, with the option to extend by four years (two plus two years).

Among the projects that require pipe and fittings – provided that the Storting (parliament) approves the plans – are the Kristin development in the Norwegian Sea and the Snøhvit development in the Barents Sea. In addition, the gas treatment plant at Kårstø north of Stavanger requires pipe in connection with the extensions to the facilities.

Depending on the type of contract in each individual project, the main contractor or Statoil’s project group will select the supplier based on requirements and price, reports Odd K Nøland, head of procurement in the project implementation unit in Exploration & Production Norway.

The agreements are part of the internal project – systems and equipment procurement (SUA).