Two thousand jobs maintained through four-year drilling contracts

Equinor, on behalf of the partners, is exercising two options to extend contracts with Archer AS, KCA Deutag Drilling Norway AS and Odfjell Operations AS for a total of four years.

The options for drilling services on fixed installations on the Norwegian continental shelf provide jobs for 2000 people per year, and have an estimated value of NOK 18.4 billion.

The contracts were signed in 2018 with three option periods of two years. The first two-year option was exercised in 2022. The new contract period runs for four years from 1 October 2024.

“We appreciate the good collaboration we have had with these suppliers for many years, and have therefore added a fourth option of two years in addition to those agreed in the original contracts. This will help ensure predictability and form the basis for continuous improvements over time. This is a clear signal that we have long-term plans for cooperation with all three suppliers,” said Mette H. Ottøy, Equinor’s chief procurement officer.

In this option round, Equinor has conducted a limited competition evaluating drilling suppliers on certain fixed installations based on a combination of technical and commercial criteria.

This has resulted in some redistribution between these suppliers on four of the 19 installations in the contract portfolios.

The services they deliver to Equinor are drilling, completion, intervention services, plugging, maintenance and modifications on 19 of Equinor’s fixed installations. They also get support from sub-contractors for some of these services, generating additional jobs along the Norwegian coast.

“We know these suppliers well, and look forward to continued collaboration about safety improvements, energy management and operational efficiency. Through the various improvement activities we aim to maintain the drilling activity on our fixed installations for many years to come,” said Erik G. Kirkemo, senior vice president for drilling & well operations.

The drilling contracts cover the following installations – field name/awarded to:

Grane – Odfjell

Gullfaks A, B & C – Archer

Heidrun – KCAD

Johan Sverdrup – Odfjell

Kvitebjørn – KCAD

Njord – KCAD

Oseberg B, C, Sør & Øst – KCAD

Sleipner A – Archer

Snorre A & B – Archer

Statfjord A, B & C – Archer

Visund – Odfjell