Roxar ASA announced the award of contract with StatoilHydro for its Permanent Downhole Monitoring Systems (PDMS) estimated to an annual value of NOK 20-40 million dependent upon annual activity level. The contract has a three times two year option period on top of the three base years.
The three year contract will see StatoilHydro purchase both the Roxar HM gauge systems and the Roxar downhole HS gauge systems. The gauges will provide StatoilHydro with vital downhole pressure and temperature monitoring data, and the continued monitoring of the whole reservoir and individual wells. The systems can also be integrated with the Roxar intelligent downhole network, which allows operators to install 32 instruments on a single cable with no interdependence between the measurements.
Roxar's PDMS equipment ensures reliable around-the-clock access to downhole information, such as reservoir pressure and temperature, from any office location. Operator benefits include improved reservoir management, well planning, and increased oil production and hydrocarbon recovery.
Roxar has held frame agreements with Statoil (now StatoilHydro) for PDMS deliveries on the Norwegian Continental Shelf and Denmark since 1987. In addition to the work covered by this new agreement, Roxar will also be supplying downhole gauges to StatoilHydro's Tyrihans and Gjoa fields, awarded in Q1 2008 but not previously announced. Furthermore, as previously announced, Roxar has also recently been selected as the preferred supplier of electrical PDMS for ex-Hydro operated fields (now StatoilHydro).
The sum of these and other awards in Scandinavia clearly demonstrates a significant level of delivery for PDMS for Roxar in the years to come, going at an equal or higher activity than the historical level.
Gunnar Hviding, CEO said: "The Scandinavian market for PDMS is a slower growth market compared to other geographic regions. However, it is a demanding market with advanced client needs and constitutes an important basis for the development of Roxar's global business. We are therefore especially pleased to see that we remain a preferred supplier to StatoilHydro and that our activity in the Scandinavia region remains at a sustained and high level."
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