Statoil hands out range of drilling contracts worth NOK 12billion

View from the Gullfaks C platform in the North Sea. PIC: Harald Pettersen
View from the Gullfaks C platform in the North Sea. PIC: Harald Pettersen

Statoil has awarded a range of drilling contracts worth NOK 12 billion (£1billion) for 18 platforms on the Norwegian continental shelf.

The work has been given to Archer, KCA Deutag and Odfjell.

All contracts are for a four-year term and involve drilling, completion, intervention services, plugging, maintenance and modifications of 18 platforms.

Statoil says the work will employ around 2,000 people per year, with the contracts including three two-year extension options.

Geir Tungesvik, Statoil’s senior vice president for drilling and wells, said: “Safe and efficient operations are our number one priority. These contract awards will help ensure safe and efficient well deliveries, and sustain a high level of activities on the Norwegian continental shelf.

“A resilient manpower base capable of performing the required scope of work has been an important selection criterion.”

A breakdown of the contracts

Oilfield services firm Archer was awarded a four-year contract for 12 of the platforms on the NCS at a value of over NOK 6 billion.

The work is set to commence on the first of October.

CEO John Lechner said: “The award of a large majority of Statoil operated platforms in the NCS is a direct result of the hard work, innovation and commitment demonstrated by all of our employees, both onshore and offshore, to deliver a high level of operational safety and technical efficiency while maintaining a safe working environment on Statoil operations.

“We look forward to continuing our working relationship with Statoil both in Norway and Brazil and being an integral part of this dynamic industry shift to integrated operations, maintenance and well services in combination with Statoil’s nominated Service Contractors.

“The eventual integrated scope will require engineering and rental services, and thus increase our projected revenue and profitability in Norway going forward.”

Statoil already has existing drilling contracts with Odfjell for Johan Sverdrup and the huge Mariner field which is set to begin production in the second half of this year.

The energy giant also has contracts with KCA Deutag for two Cat J rigs operating at Gullfaks and Oseberg.