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New fuel contract signed

December 1, 2006, 08:00 CET

Statoil ASA has signed a frame agreement, worth around NOK 10 billion, with its subsidiary Statoil Norge for the purchase of fuel for all activities on the Norwegian continental shelf (NCS).

Statoil Norway will supply diesel to vessels and installations on the NCS. (Photo: Dag Myrestrand)

The five-year deal takes effect on 1 November 2007 with a further four-year option, spanning nine years in total.

Statoil Norway will supply diesel (marine gasoil - MGO) which is used as a fuel in turbines and diesel engines on all vessels and installations where Statoil is operator on the NCS.

“This is an important deal for Statoil Norge,” says Tom E Borgersen, sales manager for auto and marine in Statoil Norge.

“Statoil ASA is a demanding customer and we work continuously to strengthen our position as first choice for the supply fleet and installations on the NCS.”

After 1 November, MGO must have a lower sulphur content than that supplied today.

“The new fuel will provide a theoretical emissions reduction of around 400 tonnes of sulphur per year, equivalent to emissions from all road transport in Norway,” says Mr Borgersen.

“The agreement will expedite access other user groups have to the low-sulphur fuel.”

Currently, Statoil Norge also supplies fuel to Statoil’s vessels and installations on the NCS from the group’s bases along the Norwegian coast. Bases in Stavanger, Bergen, Kristiansund and Sandnessjøen will be upgraded to better handle deliveries in accordance with the new contract.

The Exploration & Production Norway (EPN) business area has signed the agreement on behalf of Statoil ASA. To avoid any conflict of interest, ConocoPhillips has had responsibility for the procurement process and led evaluation of the various tenders.