Equinor has awarded Apply a framework agreement for engineering and installation services on the North Sea Statfjord field, according to a press release.
As per the agreement, work will be done on overhaul, replacement, and modification deliveries on the three Statfjord platforms. The contract will come into effect on September 1 and will last for seven years, with the option for a three-year extension.
The agreement is novel in the fact that the parties will collaborate in new ways while carrying out the work on Statfjord in order to extend field life and generate higher revenue.
Speaking on this new structuring format, Kjetil Hove, senior vice president for the new business area Field Life eXtension (FLX), said, “Our ambition is to become a leading late-life operator on the Norwegian continental shelf. In order to succeed, we must apply new working methods to reduce costs. This will create opportunities for new investments in late-life fields.”
Production from Statfjord is due to be extended by maturing new reserves for recovery and upgrading platforms as required. Roughly 100 new wells will be drilled in the period up to 2030. Statfjord A platform was initially scheduled for decommissioning in 2022, however, the field life will now be extended to 2027. Statfjord B and C will be extended from 2025 to 2040.
The new collaboration model will mean that the supplier will be integrated into Equinor’s FLX organization.