BP Norge to Use StimWell's Stimulation Vessel in North Sea

BP Norge on behalf of the Valhall partners has issued a letter of award to StimWell Services Ltd. The award of the contract is subject to final partner approval which is expected to be obtained end of this month.

The contract is for a new 'purpose built' well stimulation vessel; initially for a 4 year period with 6 year option periods, with a contract value up to NOK 2 billion.

The vessel performing the service will be a new Norwegian owned vessel with a Norwegian marine crew, and is expected to be available and commence stimulation work 4Q 2009, however with a start-up of BP activities mid 2010.

"It is our increasing activity at Valhall and the under supply in the North Sea market that triggered us to meet our future demand and restore a healthy competition in the market. The deal will bring considerable cost savings both in terms of rates and efficiency gains," said Trevor Garlick, Managing Director of BP Norge.

"This state of the art vessel will have the highest HSE standards, highest technical specifications for well stimulation equipment, large storage capacity and better station keeping at the installations," continued Garlick.

BP will make the vessel available to other operators in interim periods.