Red Spider Signs Deal with StatoilHydro

Red Spider Technology has secured a multi-million pound framework agreement with Norwegian operating giant StatoilHydro.

The agreement, which offers Red Spider the opportunity to supply its market-leading systems and services for Through Tubing Rotary Drilling (TTRD) activities to StatoilHydro's North Sea operations, is for an initial three years with three, two-year options. The framework agreement is projected to be worth around £3.5 million (NOK 40 million).

Hans Kristian Hegland, general manager of Red Spider, commented: "The agreement is a milestone in the development of the business, underlining the acceptance of our innovative technologies in the Norwegian market and strengthening our relationship with one of the world's leading oil and gas operators."

Under the terms of the framework agreement Red Spider personnel will be accompanying the equipment offshore to supervise their operation and maintenance. The agreement also covers niche products and technologies that improve operational efficiency and safety during well intervention.

"The agreement is a direct result of the success we had when running a pilot scheme with Statoil from the summer of 2005," said Chris Oliver, managing director of Red Spider. "From this, we designed products specifically for Statoil for their Norne and Gullfaks projects, which are now being rolled out across most of their operations."

Red Spider Technology develops innovative tools to meet the new challenges in the oil and gas industry. With headquarters in Westhill, near Aberdeen, and offices in Stavanger and Dubai, the company supplies innovative down-hole tools to the global oil industry, aimed at adding value by reducing client operating time, production costs and environmental risks.