Equinor Extends Drilling and Specialist Services Contracts Worth NOK 20B

Equinor Extends Drilling and Specialist Services Contracts Worth NOK 20B
Drilling at the Johan Sverdrup field in the North Sea (Photo: Kjetil Eide / Equinor ASA)

Equinor has extended its contracts with Baker Hughes Norge, Halliburton AS and Schlumberger Norge AS related to integrated drilling and well services on its fields on the Norwegian continental shelf (NCS).

Meanwhile, the company has extended its contracts with the same companies and 13 other suppliers for additional services. The contracts are valid for two years starting on June 1.

“Long-term supplier relations have proved to be important in an industry swaying rapidly between good and more challenging times. It ensures predictability and is important to develop this industry in a safe, efficient and sustainable way. We are pleased to extend these contracts, and it’s an expression of the good collaboration with our suppliers. These contracts are central in our value creation on the NCS,” says Mette H. Ottøy, chief procurement officer.

Under the drill service contracts established in 2018, all services were bundled into one contract, which gave one supplier the main responsibility for integrated drilling services, cementing and pumping, drilling and completion fluids, and electrical logging and completion.

“We see clear benefits from integrated contracts. They have been fundamental to modernize the way we work, both by the establishment of operations centers, solving tasks jointly across disciplines and applying new technologies for close communication between the offshore and onshore organizations. The integrated contracts are well complemented by the framework contracts for specialist services. We are well pleased with the contracts we are extending, and look forward to continuing our joint improvement work,” says Erik G. Kirkemo, Equinor’s senior vice president for drilling & well operations.

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