Statoil announced Thursday that it has granted lucrative extensions to services contracts previously awarded to Archer, KCA Deutag and Odfjell for drilling services on the Norwegian Continental Shelf.
The extension period for all three companies will last from Oct. 1 to Oct. 1, 2018, with “some changes to the scope awarded”, according to a Statoil statement. Under the extensions, options have been exercised for 17 instalations on the NCS with the total contract value for the next two-year period estimated by Statoil at up to NOK five billion ($603 million). The work includes drilling and well services, the maintenance of drilling facilities, as well as modifications and any optional work.
As part of the contracts, which were initially awarded in 2012 for four years with options for three times two-year extensions, will see KCA Deutag work on the Oseberg B, C, South and East instalations and Gullfaks A, B and C assets, with Odfjell Drilling working on the Grane and Heidrun instalations. Archer will work on Statfjord A, B and C assets, Visund, Njord, Sleipner A and Snorre A and B.
Commenting on the contract extensions, Geir Tungesvik, Statoil’s senior vice president for drilling and wells, said in a company statement:
“The suppliers have demonstrated innovation and submitted good proposals for continued development of these services, and Statoil is positive to continuing the work with all of the three companies. The current contracts will help maintain activity on competitive terms in a market challenged by profitability.”
Archer’s Vice President for Platform Drilling, Kenny Dey, commented in a company statement:
“I am very pleased that the excellent performance of our drilling crews over the past years has gained the confidence of Statoil and resulted in the award to Archer of this important contract extension for the provision of platform drilling services in Norway. Throughout the extension discussions we focused on developing future-oriented operating models that provide safe, efficient and cost effective solutions.”
In a separate statement announced Thursday, Statoil revealed that construction has started on the Johan Sverdrup platform, with Norway’s minister of petroleum and energy Tord Lien marking the commencement of work on project’s utility and living quarters platform on the island of Stord, north of Stavanger.
Statoil awarded a joint venture between Kværner and KBR the contract for engineering and construction of the topside for the utility and living quarters platform for the Johan Sverdrup field in June 2015. As part of the contract, Kværner will fabricate parts of the topside steel frame, and will also assemble all parts for the utility and living quarters platform before it is installed on the field in 2019. At peak, around 2000 Kværner employees will be involved in Johan Sverdrup deliveries.
Kværner’s sub-supplier Apply Leirvik on Stord will construct the accommodation module for the living quarters platform, which will be the biggest on the NCS. The other modules for the platform will be constructed at Energomontaz Polnoc Gdynia (EPG), Mostostal Pomorze Gdansk (MPG), Mostostal Chojnice and Crist Offshore in Poland, as well as in Gothenburg, Sweden. Detailed engineering will be performed at KBR’s office in Leatherhead, London, and at Apply Leirvik on Stord.
The utility and living quarters platform will accommodate the crew working on the Johan Sverdrup field during the field life of 50 years and will be equipped with a capacity of 560 people. The platform will also accommodate the field’s control and emergency centre, and some utility systems covering the whole field centre.
Statoil’s Project Director for Johan Sverdrup, Kjetel Digre, said in a company statement:
“Johan Sverdrup is the biggest industrial project in modern times in Norway, and will create considerable value for society for generations to come. Today we are kicking off the construction of the utility and living quarters platform, which is the second of four platform currently under construction in the first project phase.
“The Johan Sverdrup project is growing every day. It is a complex puzzle with activities spread all over the world. We are 14,000 people working on the project every day in 2016, and together we will perform 100 million working hours. We depend on everyone delivering as required, and all pieces of the puzzle falling into place at the right time and with the right quality. Our top priority is a safe working environment. We do not want any injuries among personnel working for the Johan Sverdrup project.”
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