Statoil Awards $1.5 Billion in Drilling Contracts

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Oil & gas giant Statoil ASA (NYSE:STO) (Stavanger, Norway) has awarded 18 drilling contracts on the Norwegian Continental Shelf (NCS) worth 12 billion Norwegian Kroner ($1.5 billion), with the lion's share going to oil services company Archer Limited (Stavanger, Norway).

Archer secured 12 of the 18 platform-based contracts worth $762 million, covering a range of works including drilling, completion, intervention services, plugging, maintenance and modifications on Statoil's fixed platforms. All 18 contracts take effect from 1 October 2018, initially for a period of four years but also include three two-year extension options. The work will employ around 2,000 people per year.

"Safe and efficient operations are our number one priority," said Geir Tungesvik, Statoil's senior vice president, Drilling & Well. "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."

Archer will now add the Grane and the Gullfaks A, B, C platforms to its portfolio and expects to increase its employee base by approximately 400 people.

John Lechner, chief executive officer of Archer, commented: "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. We look forward to continuing our working relationship with Statoil both in Norway and Brazil. The eventual integrated scope will require engineering and rental services, and thus increase our projected revenue and profitability in Norway going forward."

Contracts worth approximately $800 million--if options are exercised-- were also awarded to drilling and engineering contractor KCA Deutag (Portlethen, Scotland) for work on five platforms, including four at the Oseberg field. KCA Deutag already has responsibility for the management, operation and maintenance of the Askepott and Askeladden Category J jack-up rigs. Odfjell SE (ODF:NO) (Oslo, Norway) won a contract for drilling services at the Heidrun fixed platform.

Last month, Industrial Info reported on Statoil's plans to rename the company "Equinor" to reflect its shift to becoming a cleaner energy company. The new name will come into effect in May. For additional information, see March 21, 2018, article - Oil & Gas Major Statoil Changes Name to 'Equinor'.

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