Equinor (OSLO: EQNR) is exercising options worth £663 million to extend drilling contracts with Archer, KCA Deutag and Odfjell Drilling.
They also include completion, intervention services, plugging, maintenance and modifications on 19 of Equinor’s permanent installations in the Norwegian North Sea.
The four-year agreements, which provide jobs for around 2000 people a year, were signed in 2018.
Exercised for two years from the end of 2022, the options cover the same scope of work as previously regulated by contract. The contracts provide jobs for around 2000 people each year.
Erik Gustav Kirkemo, senior vice president for drilling and well operations at Equinor, said: “We have had a long-term and good cooperation with the suppliers, with safe and efficient operations as our top priority. These contract extensions will help ensure predictability for the parties and safe and efficient well deliveries. Together with our suppliers we want to develop these services further to ensure long-term value creation from our installations.”
Equinor’s chief procurement officer Mette Halvorsen Ottoy added: “The contracts and services have been developed in close cooperation with our suppliers over several years and will help ensure common competitiveness and sustainable activity level. We appreciate suppliers who, in addition to being competitive, help develop our industry further.”