BJ Services and Shell Ink Major Well Services Contract

BJ Services Company reports that its Well Services Division - Europe & Africa Region has signed a contract with Shell U.K. Limited (Shell) to provide coiled tubing, stimulation and nitrogen services throughout Europe. The majority of services will be carried out by BJ Services for Shell in the UKCS, on and offshore Holland, offshore Norway and Ireland.

The five-year contract, which includes two consecutive one-year options to renew, was signed by senior managers from Shell and BJ Services on February 9, 2005 in Aberdeen.

Kieron McFadyen, Technical Director of Shell Exploration & Production in Europe, said: "This contract underlines Shell's continued commitment to the North Sea. We look forward to a safe and productive working relationship with BJ services."

The contract is part of Shell's Supply Chain Management Initiative that was launched several years ago in an effort to optimize the company's range of service contracts. It recognizes the strategic importance to both BJ Services and Shell of a good working relationship to continually improve the way operations are carried out. The contract challenges BJ Services to work very closely with Shell to seek out opportunities to provide efficiencies, without jeopardizing safety or the effectiveness of the services provided by BJ Services.

Exclusive Contract Reflects Growing Relationship
The exclusive European contract is a significant addition to the existing agreements between BJ Services and Shell who work together in many countries in all continents across the world.

For BJ Services, it is an important milestone. "During the past five years, we have been working very successfully on behalf of Shell to provide effective well services, while being vigilant about safety and the environment. It is heartening to see that our efforts on Shell's behalf have fostered a strong working relationship and confidence in our ability to deliver," said Alasdair Buchanan, Region Manager – Europe-Africa Region for BJ Services. "From a corporate perspective, it is the largest contract that BJ Services has ever won through the online tendering process. It also represents nearly one-third of BJ Services' global revenue from Shell," he added.

To service the Shell contract, BJ Services will draw upon specialist personnel and equipment located at BJ Services' bases in Aberdeen-Scotland, Great Yarmouth-England, Emmen-The Netherlands and Stavanger-Norway. BJ Services will continue to provide its advanced technologies for Shell, as follows:

  • Trailer Mounted Spooler (TMS): BJ Services is the only company in Continental Europe that can transport up to 6,700 meters of large 2-3/8-inch or 3,800 meters of 2-7/8-inch coiled tubing without resorting to non-conventional transport techniques.

  • Spoolable DuraLink™: spoolable coil tubing connectors that require no welding.

  • Track and Trolley System: increases efficiencies when working on several wells located on one platform.

  • Drilling Using Coiled Tubing: underbalanced drilling operations using coil tubing. BJ Services can deploy the BHA under pressure safely and efficiently, which is critical when drilling underbalanced, especially in the presence of H2S gas.

  • CT Jetting Technology: Roto-Jet® and TornadoSM tools combine to efficiently remove particulate solids.

  • Stimulation Products: Stimulation technology: BJ Sandstone Acid™ treatments and AquaCon™ relative permeability modifiers for effective water control.

  • BJ Services has been providing well services in the UKCS to Shell for 20 years.