Statoil Enters Agreements with Two Norwegian Suppliers

Statoil has entered into frame agreements with Scandinavian Fittings and Flages and the Bergen Rorhandel/Stavanger Rorhandel joint venture for the supply of pipe.Calculations show that Statoil will require pipe and fittings worth almost NOK 1.4 billion over the next six years. The new frame agreements are valid for two years, with the two more options for two years each.

Among the projects that require pipe and fittings – provided that the Storting (parliament) approves the plans – are the Kristin development in the Norwegian Sea and the Snohvit development in the Barents Sea. In addition, the gas treatment plant at Karsto north of Stavanger requires pipe in connection with the extensions to the facilities.

Depending on the type of contract in each individual project, the main contractor or Statoil's project group will select the supplier based on requirements and price, reports Odd K Noland, head of procurement in the project implementation unit in Exploration & Production Norway. The agreements are part of the internal project – systems and equipment procurement (SUA).