Equinor will extend contracts with Baker Hughes, Halliburton and Schlumberger for integrated drilling and well services on Equinor-operated fields on the Norwegian continental shelf
The contracts are estimated at approximately Nkr14Bn (US$1.5Bn) and employ 2,000 people distributed across 18 fixed platforms and 12 mobile rigs.
“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” said Equinor chief procurement officer Mette Ottøy.
The drilling service contracts, established in 2018, gathered services in a one contract format, giving one supplier the main responsibility for integrated drilling services, cementing and pumping, drilling and completion fluids, electrical logging and completion on each installation.
Equinor believes the integrated contracts have been beneficial in modernising its operations.
“The integrated contracts are complemented by framework contracts for specialist services. We are pleased with the contracts we are extending, and look forward to continuing our joint improvement work,” added Equinor senior vice president for drilling and well operations Erik Kirkemo.
The company is also extending its contracts for additional services with the companies noted above, and 13 other suppliers. The specialist service contracts will be extended with Halliburton, Schlumberger, Baker Hughes, Weatherford, Ramex, NOV Wellbore Technologies, Petroleum Technology Company, TCO, Interwell, Welltec Oilfield Services, Roxar Flow Measurement, Sekal, Archer Oiltools, Silixa, Tendeka and Ardyne.
These services are valued at close to Nkr6Bn (US$637M) and will employ some 600 people.
Specialist services include electrical submersible pumps, downhole monitoring, tubing conveyed perforation, wired drill pipe, liner hanger, additional completion equipment and services, sand screens, fibre optics, fishing services, downhole mechanical isolation, multilateral technology, coring services, one trip steerable drilling liner system, and expandable hydraulic screens.
Both the drilling services and specialist service contracts will apply for two years effective 1 June 2022.
