Equinor awards largest-ever drilling, well services contract
Equinor has awarded new four-year service contracts to Baker Hughes Norge, Halliburton, and Schlumberger Norge for integrated drilling and well services offshore Norway.
STAVANGER, Norway – Equinor has awarded new four-year service contracts to Baker Hughes Norge, Halliburton, and Schlumberger Norge for integrated drilling and well services offshore Norway.
The contracts, with a combined value of around NOK30 billion ($3.66 billion), cover cementation and pumping,drilling and completion fluids, completions and electrical logging.
They apply to most of Equinor’s operated fields on the Norwegian continental shelf, and carry options for five two-year extensions, subject to achievement of certain targets.
According to Equinor, the purpose of integrated drilling and well services is to clarify roles and responsibilities, with fewer interfaces and more seamless planning and implementation of the operations between the various contributors. The service supplier, rig supplier, and Equinor will collaborate as a team, and together decide how to best solve the tasks.
“The contracts are the biggest we have ever awarded within drilling and well service,” said Pål Eitrheim, Equinor’s chief procurement officer. “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.”
“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.”
Euqinor expects the program to create jobs for around 2,000 people on 17 fixed platforms and eight mobile rigs.
Baker Hughes, a GE company (BHGE) will be the main drilling and well services provider for the eight rigs developing Troll, Oseberg, and Grane – three of the most prolific and active fields in the Norwegian North Sea.
The company will provide integrated drilling services, drill bits, cementing and pumping, drilling and completion fluids, electrical wireline logging and completions, in addition to upper completions and mechanical well washing services for three other fields.
Currently, BHGE provides integrated well services on Equinor’s Johan Sverdrup field development and theAskepott jackup.
OnJohan Sverdrup, the company and its rig services provider completed the first eight wells eight months ahead of schedule and achieved a 50% reduction in drilling days and costs.
Equinor has also signed another contract under whichAkastor will provide year-round light well intervention services (LWI) on the Norwegian continental shelf for five years, extendable by a further three years.
Value of the initial five-year period is around $370 million: the contractor will perform the program from theAKOFS Seafarer well intervention vessel starting in 1Q 2020.