Aker Solutions has secured a three-year contract extension to an existing framework agreement on Sept. 11 for work at North Sea fields operated by ConocoPhillips.
The company will continue as ConocoPhillips’ main supplier of maintenance and modifications work offshore Norway. The agreement runs from January 2021 until the end of 2023.
The contract value will be determined by future call-offs for maintenance and modifications work and could range between NOK 300 million (US$33.1 million) and NOK 700 million (US$77.4 million) per year. The range does not represent a minimum or maximum amount and is subject to change.
“We look forward to delivering new projects and services to one of the largest maintenance and modifications portfolios offshore Norway,” Kjetel Digre, CEO of Aker Solutions, said.
The work will be managed and executed by Aker Solutions’ office in Stavanger and fabrication yard in Egersund. The agreement will also provide work for the company’s offshore employees.
The contract will be booked as order intake in the third quarter of 2020.
Norwegian oil service providers Aker Solutions and Kvaerner will merge to strengthen their base in the global energy industry, including renewable energy, both companies said on July 17.
Equinor plans to not drill any new unconventional wells this year in the U.S., where it has acreage in the Bakken and Marcellus shale formations, a spokesman for the Norway-based oil and gas company said.
The oil service market continues to show signs of recovery, Norway’s Aker Solutions said on Feb. 8 as the company reported a higher than expected order intake for the fourth quarter, while profits were in line with forecasts.