Equinor awards ‘biggest ever’ drilling and well service contracts

Image by: Harald Pettersen - Equinor - Risers at Grane platform

World’s largest oilfield services providers Schlumberger, Halliburton, and Baker Hughes have been awarded $3,67 billion worth of contracts for integrated drilling and well services on most of the Equinor-operated fields on the Norwegian continental shelf.

Initially awarded for four years, the contracts have a total estimated value of some NOK 30 billion. The contracts include options for five 2-year extensions. Extension of the contracts is subject to continuous achievement of the goals for well deliveries, Equinor said on Monday.

Pål Eitrheim, Statoil’s chief procurement officer: “This is a great day for Equinor and the Norwegian continental shelf. The contracts are the biggest we have ever awarded within drilling and well service. The integrated delivery model we have chosen will strengthen the interaction between the service supplier, rig supplier, and operator, enabling us to drill more wells. This, in turn, will enhance recovery and ensure long-term operations.”

The purpose of integrated drilling and well services is to clarify roles and responsibilities. This results in fewer interfaces and more clearly defined responsibilities, facilitating more seamless planning and implementation of the operations between the various contributors, Equinor said.

Geir Tungesvik, senior vice president, drilling & well: “The collaboration model has already been tested out for Johan Sverdrup Phase 1, Aasta Hansteen, Mariner and the Askeladd and Askepott Cat J rigs with very good safety and efficiency results.

2000 jobs

According to Equinor, the new contracts will create jobs for some 2000 people on 17 fixed platforms and eight mobile rigs. They replace the current service contracts, which expire on 31 August. The contracts aim at new ways of collaborating, giving the service suppliers greater responsibility for services than before.

Support from land will be essential to successful implementation of integrated operations. For mobile units the service contracts will be linked to the rig rather than the various licenses, Equinor highlighted.

“The service supplier, rig supplier and Equinor will collaborate as a team, and together decide how to best solve the tasks. We have common drivers to help us achieve our aims, and we are willing to reward good performance because it helps us increase profitability. The principle of the collaboration model is to always operate according to best practice, learn across operations and leverage lessons learned for continuous improvement,” says Tungesvik.

The contracts include the following services for well construction: Integrated drilling services; Cementation and pumping; Drilling and completion fluids; Electrical logging; Completion

Share this article

Follow Offshore Energy Today

Events>

<< Dec 2018 >>
MTWTFSS
26 27 28 29 30 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31 1 2 3 4 5 6

Fuel Cell Expo 2019

FC EXPO is world’s largest show for hydrogen & fuel cell…

read more >

LNG Bunkering Summit 2019

LNG Bunkering Summit will cover the obstacles facing both the shipping and port communities…

read more >

Egypt Petroleum Show

This event will feature 500+ regional & international exhibiting companies from over 35 countries…

read more >

IoT in Oil & Gas 2019

The IoT in Oil & Gas 2019 Conference will continue to focus on helping operators…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply