Hydro Oil & Energy and Shell U.K. Limited have signed a contract for supply services to nine of Shell's offshore production platforms in the British sector of the North Sea. The supply service contract is a milestone in the cooperation between offshore operators in the British and Norwegian sectors of the North Sea.
“The agreement opens very interesting perspectives for Hydro and the Norwegian supply service industry for increased cooperation across the border. Sharing our services with nine Shell-operated platforms on the UK shelf also gives us an opportunity to reduce costs for Hydro operated fields in the North Sea,” says Øystein Michelsen, head of Hydro’s operations on the Norwegian continental shelf.
Hydro’s logistics organisation, consisting of nine Hydro-operated platform supply vessels and the Mongstad base north of Bergen, will supply Shell’s platforms in the Brent and Northern area with production chemicals.
After an interim period of three months, the agreement will be extended to include drilling fluids and equipment.
Øystein Michelsen said: “The agreement provides Hydro with larger volumes over which to spread our logistics costs and is therefore a valuable contribution in our efforts to create more efficient offshore operations. Together with Shell we will work hard to ensure that safe and efficient supply services create benefits for both companies.”
Hydro’s offshore supply chain is centred at the Mongstad north of Bergen, Norway’s largest offshore supply base. Hydro’s agreement with Shell implies a continued high level of activity at the Mongstad base in the time to come.
| The Mongstad base website |