Statoil ASA (NYSE: STO) said on Dec. 14 it has awarded new subsea maintenance framework agreements to Aker Solutions ASA, TechnipFMC Plc (NYSE: FTI) and OneSubsea LLC.
The contracts have a total estimated value of more than NOK 8 billion (US$966 million) and a duration extending to 2023. In addition, the contracts include options for a total of 20 years. The estimated total value will be approximately NOK 40 billion (US$4.8 billion), should all the options with the assumed scope of work be exercised.
“We have entered into long-term agreements lasting for 25 years with all options included. This provides increased predictability and stable framework conditions both for the suppliers and us," Pål Eitrheim, Statoil’s chief procurement officer, said.
“The negotiations have been constructive and we have agreed on agreements with simplified requirements. We have established a good starting point for safe and efficient subsea well activities on the Norwegian continental shelf going forward,” he added.
The new agreements apply to Statoil-operated subsea wells on the Norwegian continental shelf with equipment from the aforementioned suppliers and include maintenance of equipment belonging to more than 500 wells. The figures include planned wells in the field developments of Johan Castberg and Snorre Expansion Project.
“Production from subsea wells constitutes a significant part of Statoil’s total volumes from the Norwegian continental shelf. The new framework agreements are therefore important to achieve a sustainable cost level and long-term production,” Kjetil Hove, senior vice president for operations technology, said.
“The agreements provide us with a good foundation for continuing the close cooperation related to further streamlining, digitalization and technology development within the subsea market.”
The contracts apply to subsea maintenance and additional equipment for the Norwegian continental shelf, with work both offshore and onshore. The agreements are effective from March 1, 2018 with a fixed duration of five years and include five four-year options.
Most of the maintenance work will be carried out at the Ågotnes Base outside Bergen, in addition to the Polar Base in Hammerfest.
Recommended Reading
Parker Wellbore, TDE Partner to ‘Revolutionize’ Well Drilling
2024-03-13 - Parker Wellbore and TDE are offering what they call the industry’s first downhole high power, high bandwidth data highway.
Ecopetrol, Occidental Permian JV Generating Positive Results
2024-03-07 - Ecopetrol SA's joint venture with Occidental Petroleum in the Permian continues to generate outstanding operational and financial results for the Colombian state-owned energy giant.
Equinor Brings Solar Plant Online in Brazil
2024-03-08 - Equinor says the Mendubim solar plant will produce 1.2 terawatt hours of power annually.
TotalEnergies, Sinopec to Develop SAF Unit in China
2024-03-26 - TotalEnergies and Sinopec’s production unit will have the capacity to produce 230,000 tons of sustainable aviation fuel per year.
OEP Completes Acquisition of TechnipFMC’s Measurement Solutions Business
2024-03-27 - One Equity Partners said TechnipFMC’s measurement solutions business will be rebranded as Guidant and specialize in measurement technology, automation solutions and global systems.