Equinor has awarded drilling service contracts at a total value of about NOK 2.5bn, exclusive of options, to several suppliers. The services will be delivered to both new and existing fields on the Norwegian continental shelf.
Contracts for services related to liner hangers were signed in Equinor’s digital laboratory at Forus, Stavanger. Contracts for additional completion and downhole monitoring have been signed earlier.
“These contacts will help us continue our safe and efficient drilling and well operations. The suppliers are specialists that we have worked with before, and we know what they stand for. We look forward to continuing our good cooperation,” says Geir Tungesvik, Equinor’s senior vice president, Drilling & Well.
The total contract value for these services is estimated at about NOK 2.5bn for the 3-year fixed contract term. In addition, there are five 2-year options for all awards.
“We have standardized the contract set-up between various suppliers. This simplifies collaboration and creates win-win solutions. For these services, we do not buy services from the biggest suppliers only, but also from small-size suppliers with the required specialist competencies,” says Peggy Krantz-Underland, Equinor’s chief procurement officer.
The services are key to capturing additional value on the Norwegian continental shelf, aiming to improve the recovery rate from 50 to 60%.
The services related to liner hangers and additional completion are based on framework contracts with standardized conditions where the volume may vary. The estimated value is NOK one billion and NOK half a billion respectively for three years.
The downhole monitoring contracts were awarded in March, covering a predetermined scope at a value of about NOK 1bn for three years.
