StatoilHydro Signs Drilling Service Deals Worth $483MM with 8 Companies

StatoilHydro ASA

Frame agreements with a collective value of roughly NOK 3 billion (or US $483 million) have been concluded by StatoilHydro with suppliers of drilling equipment.

"These deals will boost administrative efficiency in ordering and delivering such gear to fixed installations," said Tore G Teige, Vice President for Project Management in the drilling and well cluster.

"Standardized equipment and shorter delivery times are other economies of scale we achieve through the agreements."

He added that StatoilHydro has found more need to coordinate drilling gear deliveries since the merger. "We've also seen greater opportunities for such solutions."


An enquiry was sent to suppliers this spring, with drilling equipment requirements for the group's installations divided into a series of packages. Frame agreements covering up to two suppliers have been concluded for each package, applying price and quality as the basis for making a selection.

The deals run for three years with two options for StatoilHydro to secure two-year extensions. Where service and spare parts are concerned, agreements run for five years with two five-year options.

Suppliers who have been awarded frame agreements are Aker Solutions, National Oilwell Norway, Step Offshore, Weatherford, Scomi Oiltools, Halliburton (frame agreement and contract), MI Swaco and Cameron.


One of the selection criteria was that only tested technology would be used, Teige reported. "We can't install equipment which hasn't been subject to proper testing. At the same time, however, we feel it's important to focus on new solutions.

"One bidder presented a technological advance which improves health, safety and the environment. We want to secure a letter of intent which will allow us to use this product once it’s been further tested."


Equipment covered by the agreements will be significant for the future operation of StatoilHydro's fixed installations, noted Fredrik Stang Rydin, Procurement VP for Projects.

"The deals will be important for long-term planning of the upgrades required on our facilities. Workloads will also be more predictable for our suppliers."