Statoil inks potential $4.83B in subsea agreements

Norwegian oil major Statoil has awarded three new subsea maintenance framework agreements, extending to 2023, to Aker Solutions, TechnipFMC and OneSubsea, with a total estimated value of more than US$970 million (NOK8 billion). 

In addition, the contracts include options for a total of 20 years, which could push up the total value to about $4.83 billion (NOK40 billion), should all the options with the assumed scope of work be exercised.

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 (pictured, image from Statoil) and Snorre Expansion Project.

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 1 March 2018, with a five-year fixed duration and five, four-year options.   

“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. 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,” says Pål Eitrheim, Statoil’s chief procurement officer.

“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. The agreements provide us with a good foundation for continuing the close cooperation related to further streamlining, digitalisation and technology development within the subsea market,” says Kjetil Hove, senior vice president for operations technology.

Most of the maintenance work will be carried out at the Ågotnes Base outside Bergen, in addition to the Polar Base in Hammerfest.