AGR Cements Well Management Contract with Statoil

AGR has been awarded a frame agreement which includes the possibility for total well management services with Statoil worth approximately 100 - 130 million NOK per year (17-21 MUSD/year). The contract period is for two years with the possibility for an additional two plus two years extensions.

"This is a very encouraging start to the year," responded Executive Vice President in AGR Sjur Talstad.

"We are looking forward to supporting Statoil in their drilling and well operations in a time with increased drilling activity for the industry. Our well management teams are exceptionally experienced when it comes to this type of activity, ensuring our clients achieve enhanced operational performance within a safe environment."

AGR is the world's largest independent well management organization and is one of two service providers awarded this type of contract from Statoil.

The primary scope of the contract includes the possibility of executing, planning, operations and post well activity for drilling and well operations out of Stavanger, Stjørdal and the northern areas in Norway. The frame agreement also includes well management support to Statoil's international operations where AGR also can provide support from its international offices including Aberdeen, London, Houston, Perth and Dubai/Abu Dhabi.

Sjur Talstad, AGR's Executive Vice President, commented, "We are known for operating within very challenging environments across the globe where we provide an innovative and effective approach to our clients. We look forward to supporting Statoil throughout the course of this contract."

He added that this contract will also result in strengthening of AGR organizations in Stavanger, Oslo and Trondheim.