Norwegian firm Equinor has awarded a service contracts to provide integrated drilling and well services for most of the Equinor-operated fields on the Norwegian continental shelf.


Image: The Equinor-operated Grane platform in the North Sea. Photo: courtesy of Harald Pettersen/Equinor ASA.

The contracts have been awarded to Baker Hughes Norge, Halliburton and Schlumberger Norge and have a total estimated value of about NOK30bn ($3.6bn).

The Norwegian company said that the contracts include options for five 2-year extensions, which are subject to continuous achievement of the goals for well deliveries.

Equinor chief procurement officer Pål Eitrheim said: “This is a great day for Equinor and the Norwegian continental shelf. The contracts are the biggest we have ever awarded within drilling and well service.

“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.”

Expected to create 2000 jobs on 17 fixed platforms and eight mobile rigs, the new contracts replace the current service contracts which are set to expire on 31 August 2018.

Equinor drilling & well senior vice president Geir Tungesvik said: “The collaboration model has already been tested out for Johan Sverdrup Phase 1, Aasta Hansteen, Mariner and the Askeladd and Askepott Cat J rigs with very good safety and efficiency results.”

Under the contracts, the firms will provide services for well construction including integrated drilling services; cementation and pumping; drilling and completion fluids; electrical logging; and completion.

Tungesvik added that the service supplier, rig supplier and Equinor will collaborate to jointly decide how to best solve the tasks.

“The principle of the collaboration model is to always operate according to best practice, learn across operations and leverage lessons learned for continuous improvement.”

Equinor expects the drilling and well services to reduce interfaces and more clearly define responsibilities, facilitate more seamless planning and help in implementation of the operations between the various contributors.