A new compensation format will help improve efficiency as Equinor awards new framework agreements for safety and automation systems with five suppliers, the company said on Dec. 16.
The framework agreements cover operation of all the company’s installations on the Norwegian continental shelf (NCS) and onshore plants in Norway. They may also be used by the company’s international activities and for new development projects.
Total value of the five-year fixed period of agreement is estimated at just above NOK five billion (US$556 million). Three five-year options are additional, depending on the lifetime of each installation. The agreements cover more than 500 jobs.
“We are pleased to sign new agreements with all our suppliers of safety and control systems. The agreements include a new compensation format that rewards safe and effective deliveries, aiming for closer collaboration and smarter maintenance and modifications. If we jointly succeed in reducing our total costs, it will benefit everyone involved in the effort,” Peggy Krantz-Underland, chief procurement officer, said.
The safety and automation systems on the installations are the brain of the plants. The agreements cover daily operation and ensure continuous maintenance, modifications and upgrading. Cyber security is also becoming an increasingly important part of the work scope.
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