(World Oil) – Equinor has extended a series of drilling and well services agreements valued at approximately NOK 17 billion ($1.6 billion) to sustain production and activity on the Norwegian Continental Shelf.
Jannicke Nilsson, chief procurement officer at Equinor. Image: Ole Jørgen Bratland, Equinor.
The contracts include integrated drilling and well services agreements worth NOK 8.3 billion, alongside corporate framework agreements for specialist services valued at roughly NOK 4.3 billion per year over two years.
Baker Hughes Norge AS, Halliburton AS and SLB Norge AS were awarded the core integrated drilling and well services contracts, covering a wide range of assets across the shelf. The same companies, along with additional suppliers, were also selected for specialist service agreements supporting well construction and intervention activity.
“These agreements are among the largest we have, and they are crucial for activity on the Norwegian Continental Shelf,” said Jannicke Nilsson, chief procurement officer at Equinor. “New wells enable us to maintain high production and deliver stable energy to Europe.”
Equinor said drilling and well operations will play an increasingly important role in sustaining output from the mature North Sea basin, where new wells and interventions are expected to account for a growing share of future production.
“New wells are expected to account for around 70% of Equinor’s production in 2035,” added Rune Nedregaard, senior vice president for Wells. “That requires closer collaboration with suppliers and increased use of technology and standardisation.”
The agreements are expected to support around 2,500 jobs and cover activity on both fixed installations and mobile rigs.
