Equinor lengthens Norwegian drilling, well services deals

Equinor has extended multiple supplier agreements for drilling and well services on the Norwegian continental shelf.

The company has taken up one-year options under the three contracts for integrated drilling and well services to Baker Hughes Norge, Halliburton and SLB Norge, and two-year options under the 18 corporate framework agreements to the same trio and 15 other specialist services providers.

Combined value of the extensions is NOK17 billion (US$1.83 billion).

Chief procurement office Jannicke Nelson said, “These agreements are among the largest we have, and they are crucial for activity on the Norwegian continental shelf.

“New wells enable us to maintain high production and deliver stable energy to Europe. This is particularly important at a time of turbulence in the energy markets.”  The agreements will employ around 2,500 people and cover activity on both fixed installations and mobile rigs.

The company’s goal is to sustain production towards 2035 at around 1.2 MMboe/d.

Svp for Wells Rune Nedregaard said: “New wells are expected to account for around 70% of Equinor’s production in 2035. This involves both more wells and more well interventions, which must be delivered faster and significantly more cost-efficiently than today.

“That requires closer collaboration with the supplier industry and increased use of technology and standardisation.

“We are now moving to a greater extent towards industry standards. Together with our suppliers, we will use this to simplify work processes, reduce costs and increase pace, while maintaining safety.”

The contracts for integrated drilling and well services include provision for well construction of cementing and pumping, drilling and completion fluids, electrical logging, and completion. The suppliers and their allocated rigs/platforms are as follows:

• Baker Hughes: Grane, Oseberg B - C - Øst - Sør, Visund A*, Heidrun*, Askepott*, Johan Sverdrup DP, Deepsea Bergen, Transocean Encourage, COSL Promoter, Transocean Norge* and Transocean Spitsbergen*
• Halliburton: Askepott*, Njord A, Heidrun*, Snorre A - B, Kvitebjørn*, Shelf Drilling Barsk*, Transocean Enabler*, Transocean Spitsbergen* and Transocean Enabler
• SLB: Gullfaks A - B - C, Kvitebjørn*, Statfjord A - B - C, Visund A*, Deepsea Stavanger, Askeladden, Shelf Drilling Barsk*, Deepsea Aberdeen, COSL Innovator, Transocean Norge* and Transocean Spitsbergen*

Specialist services cover electrical submersible pumps, downhole monitoring, tubing conveyed perforation, wired drill pipe, liner hanger, additional completion equipment and services, sand screens, fiber optics, fishing services, downhole mechanical isolation, multilateral technology, coring, one-trip steerable drilling liner system, and expandable hydraulic screens.

The suppliers are Weatherford Norge, Roxar Flow Measurement, Archer Oiltools, Interwell Norway, NOV Wellbore Technologies NUF, Welltec Oilfield Service, Ramex., TCO, Silixa, Tendeka, Sekal, Expro Norway, Enventure Global Technology, Coretrax Americas, and Corpro Systems.