German oil and gas firm Wintershall has awarded a four-year service contract to support its exploration and development projects in Norway to Halliburton.
Halliburton will provide drilling-associated services on Wintershall’s Maria development in the Norwegian Sea. The agreement, which contains incentives for efficient well deliveries, can also be used for other Wintershall activities, the oil company said on Thursday.
“At an uncertain time for the industry, this contract provides a timely boost for the supplier market while laying the groundwork for efficient construction of our operated development and exploration wells over the rest of the decade,” said Bernd Schrimpf, Managing Director of Wintershall Norge.
Wintershall and Halliburton will now start detailed engineering work prior to the start of drilling for the Maria development in the first half of 2017. Early next year, Halliburton will provide services supporting the drilling of six development wells on Maria’s subsea templates located at a depth of around 300 meters on the Halten Terrace in the Norwegian Sea.
“With this contract, we are further pressing ahead with our first operated development in Norway. By using clear performance incentives, we are creating value for Wintershall, our partners and the Norwegian E&P supply chain,” said Hugo Dijkgraaf, Wintershall Director for the Maria Project.
Through the contract Halliburton will supply drilling services and associated tools, drilling and completion fluids, cementing, and coring. There is also an option for plugging and abandoning services. The four-year contract contains options to extend for up to four additional years. No financial details of the contract have been disclosed.
The plan for the development of Maria field was approved by the Norwegian authorities in September last year. Under the approved development plan, Maria’s two templates will be linked via a subsea tieback to the Kristin, Heidrun and Åsgard B production platforms. The Maria well stream will go to the Kristin platform for processing while supply of water for injection into the reservoir will come from the Heidrun platform. Lift gas will be provided from Åsgard B via the Tyrihans D field subsea template. Processed oil will be shipped to the Åsgard field for storage and offloading to shuttle tankers. Gas will be exported via the Åsgard Transport System pipeline to Kårstø.
The Maria field is located approximately 20 kilometres east of the Kristin field and about 45 kilometres south of the Heidrun field on the Halten Terrace in the Norwegian Sea. Wintershall Norge is the operator of the license with a 50 percent share. Petoro has a 30 percent share and Centrica Resources (Norge) owns the remaining 20 percent.