Statoil Extends Contracts with Schlumberger, BH in Norway

Statoil has extended its contracts with Schlumberger Norge AS and Baker Hughes Norge AS for integrated drilling services. The extensions are valid for two years from the autumn of 2010.

The contracts include delivery of directional drilling, measurement while drilling (MWD) and mud logging services for a total of 25 licenses on the Norwegian continental shelf (NCS).

The total value is estimated at around NOK 2.5 billion per year.

The contract extensions are the result of a comprehensive process that Statoil has carried out to adjust costs in relation to the market for drilling and well services.

As operator Statoil has furthermore contracts with other suppliers of similar services that are still under consideration.

"Statoil aims high with regard to drilling efficiency and progress," said Anders Opedal, head of procurements in Statoil. "We expect all involved parties to meet, and preferably exceed, these goals."

The contracts will help meet Statoil's expectations to quality and enhanced efficiency.

"It's crucial that our suppliers contribute positively to reaching our goals in a safe and secure manner and in compliance with our HSE and quality standards," said Geir Slora, head of the drilling and well entity in Statoil.