Norwegian oil company Statoil has awarded Baker Hughes Norway the onshore contract for integrated drilling services for Johan Sverdrup oil field in the Norwegian section of the North sea.
According to Statoil, the value of the deal is NOK 1.5 billion ($186.9 million) and is valid for six years with a four-year extension option for the entire field life. The service will be provided locally from Stavanger.
For the Johan Sverdrup field, one of the largest ever discovered in Norway, Statoil has decided to invite the market to tender for integrated services in order to cut total well costs and achieve more efficient well services, the oil giant has explained. Under the contract Baker Hughes will provide the whole range of services within: Cementing and pumping; Completion; Drilling and completion fluids, as well as offshore handling of drill cuttings; Integrated drilling services.
“We are pleased to award this contract to Baker Hughes and believe that this will help achieve Johan Sverdrup’s objectives of safe operations and efficient well deliveries and also support Statoil’s industry efforts to reduce total well costs”, says Margareth Øvrum, executive vice president for Technology, Projects and Drilling.
“Drilling will commence in 2016. Together with Baker Hughes we will quickly establish an integrated operations team, working closely with the drilling and rig contractor Odfjell to plan and optimise well deliveries. This award will play an important part in driving performance and creating value for Johan Sverdrup”, says Øivind Reinertsen, senior vice president for the Johan Sverdrup field.