Norwegian oil and gas company OKEA has awarded Aker Solutions a seven-year extension to their existing maintenance and modifications frame agreement, covering work on all installations offshore Norway operated by OKEA.
Aker Solutions said that the contract was a substantial one. Aker Solutions defines a substantial contract as being between NOK 700 million (~$78,46 million) and NOK 1.2 billion (~$134,5 million).
"Maintenance and modifications are crucial to ensure safe and efficient operations of installations and facilities. Aker Solutions has delivered maintenance and modifications services for OKEA since 2018 which will now be further extended to 2028," Aker Solutions said.
The deal includes exercising the remaining three options in the agreement. The work scope will cover concept study, engineering, procurement, construction and installation services for all onshore and offshore assets.
Under the contract, Aker Solutions will continue to work on modifications on the Draugen oil and gas platform to process gas from Hasselmus. The project is scheduled to be completed at the end of 2023.
Aker Solutions is also a key partner in developing the Draugen Power from Shore project. The project is currently in the FEED phase and an investment decision and PDO is planned for late 2022.
"We value the opportunity to build a long-term partnership with OKEA and the trust in our teams to continue delivering safe and efficient operations. Our experiences working with OKEA in the last few years will enable us to accelerate initiatives towards cost-effective and low-carbon solutions, with a strong emphasis on continuous improvements and increased productivity in the work we deliver,” said Kjetel Digre, chief executive officer of Aker Solutions.
“We are pleased to continue our collaboration with Aker Solutions in the long term by exercising all three options in the agreement. I look forward to leveraging the cooperation of the workforce in both companies to maximize production in our fields safely while reducing carbon intensity,” said Knut Gjertsen, senior vice president of OKEA.
OKEA operates the giant Draugen platform at the namesake field off Norway, which started producing oil in October 1993.
OKEA acquired its interests in the Draugen and Gjøa offshore fields in Norway for 4.52 Billion NOK (US$526 million) from Shell in 2018. Draugen achieved peak output of about 225 000 bopd in 2001.
OKEA's current overall target production is between 18 500 - 20 000 boe per day in 2022. Apart from Draugen, other producing fields OKEA has a share in are Gjøa, Ivar Aasen, and as of recently Yme.