Statoil Earmarks $7.6B for Frame Agreements on Norwegian Continental Shelf

Statoil is entering into frame agreements involving maintenance and modification work valued at NOK 49 billion ($7.6B), options included.

The agreements, which have duration of four years with two two-year extension option, will occupy more than 5,000 people during the period.

Five companies have given their assent to the letters of intent sent by Statoil on behalf of the license partners in question. These companies will carry out maintenance and modification work on all of Statoil's installations on the Norwegian continental shelf in the coming years.

The agreements also apply to the land facilities on Sture and Melkøya, as well as Kårstø and Kollsnes where Statoil – in its capacity as technical service provider – is signing agreements on behalf of the operator, Gassco.

These five companies are:

  • Aibel AS
  • Aker Solutions AS
  • Reinertsen AS
  • Fabricom AS
  • Apply Sørco AS

Standardized agreements

It is the first time Statoil enters into this type of agreement following the merger with the oil and energy division of Hydro in 2008.

Although previously there were several different types of agreement, they have now been standardized. This will enable Statoil to follow "The maintenance and modification agreements are extremely important for Statoil’s operations. We expect these suppliers to give both our offshore and land-based plants good quality and regularity," said Øystein Michelsen, Statoil's executive vice president for Exploration and Production Norway.

Frame agreements:

  • Aibel AS
    • Statfjord A/B/C
    • Oseberg F/C/Ø/S
    • Huldra/Veslefrikk
    • Njord A/B
    • Kristin
    • Norne
    • Snøhvit
  • Aker Solutions AS
    • Snorre A/B
    • Gullfaks A/B/C
    • Visund
    • Åsgard A/B
  • Reinertsen AS
    • Troll A/B/C
    • Heimdal
    • Grane
    • Heidrun
  • Fabricom AS
    • Sleipner
  • Apply Sørco AS
    • Kvitebjørn
    • Brage
  • Aibel AS
    • Kollsnes
    • Kårstø
    • Sture

Complete portfolio:

  • Estimated total value for 4-year contract period: NOK 24 400MM
  • Estimated total value for 4-year contract period + 2 x 2 year options: NOK 48 800MM