Statoil Awards $1.5bn of Drilling Contracts

Statoil said April 3 it has awarded new drilling contracts worth kroner 12bn ($1.5bn) to Archer, KCA Deutag and Odfjell Drilling for drilling, completion, intervention services, plugging, maintenance and modifications on 18 of Statoil’s fixed platforms.

They take effect from October 1 2018 and last initially for four years; but they include three extension options, each of two years, for additional payment.

They include contracts for the Sleipner and Kvitebjorn gas/condensate fields, awarded respectively to Archer and Aberdeen-based KCA Deutag, plus the mostly oil producing Grane, Gullfaks A B and C, Heidrun, Njord, Oseberg B C south and east, Snorre A and B, Statfjord A B and C, and Visund fields.

Bermuda-registered, Norway-based Archer said it secured 12 of the 18 contracts awarded, for a value of kroner 6bn, rising to kroner 15bn should Statoil elect to exercise all options.

Update April 5: Kvaerner and Aker Solutions in a 50/50 joint venture were awarded a letter of intent by Statoil for 'phase 2' modifications at the giant Johan Sverdrup oilfield development offshore Norway, the two contractors said April 5. If firmed up, it will provide work for about 2,000 employees and have a contract value of kroner 3.4bn ($434mn) . Work would start 2Q2018 and end 2022. Both firms are currently Johan Sverdrup contractors.   Statoil says that phase 1 is expected to start up in late 2019 with production capacity estimated at 440,000 b/d, with phase 2 expected to start up 2022 increasing production to about 660,000 b/d.