Equinor Awards Wireline Services Contracts for 15 Fields
Equinor (NYSE: EQNR) reported Tuesday that it has awarded Altus Intervention AS and Archer Integrated Services AS framework contracts to supply integrated wireline services within well intervention to its fixed platforms.
“This is the result of a long-term strategy to achieve more holistic solutions, and an opportunity to modernize the intervention services,” remarked Peggy Krantz-Underland, Equinor’s chief procurement officer, in a written statement emailed to Rigzone.
Equinor estimates the total value of the fixed-term framework contracts – awarded for approximately five years from May 2021 – approaches NOK 1 billion (US$117 million) per year. It pointed out the contracts include three two-year extension options, adding the agreements include optionality for wireline services to other areas such as mobile units. With main offices in the Norwegian cities of Stavanger (Altus) and Sandnes (Archer), the suppliers will employ an estimated 500 people via the contracts, the operator added.
“We have in general been satisfied with the intervention services provided by our suppliers, and we are looking forward to improving further together with two strong supplier alliances,” commented Erik G. Kirkemo, senior vice president for drilling and well operations with Equinor. “We want to move in the same direction as we do in other parts of our drilling and well operations, with onshore operational centers supporting several offshore operations.”
According to Equinor, the new intervention contracts with Altus and Archer will cover total responsibility for wireline intervention services – a departure from the longstanding practice of awarding separate contracts for cable and mechanical services, perforation logging and tractor and electro-mechanical services.
Equinor pointed out the integrated wireline services suppliers have formed alliances as follows to offer complete deliveries:
- Altus: collaborating with Baker Hughes Norge AS (NYSE: BKR); responsible for the Gina Krog, Grane, Gudrun, Johan Sverdrup, Kvitebjørn, Oseberg, Martin Linge, Sleipner, Valemon, Veslefrikk, Heidrun, Snorre and Visund fields
- Archer: collaborating with Welltec Oilfield Services AS and Schlumberger Norge AS (NYSE: SLB); responsible for the Gullfaks and Statfjord fields.
Employees will be cross-trained to enhance competence levels across the alliances, Equinor noted. The company added the contracts emphasize using new technology and digital solutions, emission reduction plans, operating cost reductions and remote operations opportunities.
“It will give the suppliers stronger authority and responsibility and enable more performance-based compensation schemes,” Krantz-Underland said of the integrated contract arrangement. “We are currently intensifying our effort of building one team together with the suppliers.”
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