Contracts Awarded for the Kvitebjorn Field

Statoil has signed contracts for well services in connection with the development of the Kvitebjorn gas and condensate field in the North Sea. If the 11 planned production wells are drilled, the contracts will be worth a total of around NOK 400 million. Schlumberger Oil Field Services will provide directional drilling, logging while drilling, mud logging and electrical logging services. Halliburton will supply drilling fluids and cementing services. Baker Oil Tools has been awarded the contract for downhole completion services and installation of tools in the wells. The contract for production drilling and maintenance of the drilling package has already been awarded to Prosafe. Plans call for drilling to start in August 2003.

Trond Rosbak, manager for drilling and well activities on Kvitebjorn, reports that contractors will be actively involved as early as the planning phase. "We have focused on the skills and quality of our suppliers when choosing their services, and we look forward to cooperating with them on Kvitebjorn," he adds. The Kvitebjorn development is technologically demanding because the reservoir is under high pressure and high temperature. Four of the 11 wells are planned to be operative when the field comes on stream in autumn 2004.

Statoil has a 50 percent stake in Kvitebjorn. The state's direct financial interest has 30 percent. The other licencees are Norsk Hydro with 15 percent and TotalFinaElf with five percent.