Baker Hughes has picked up the US$190 million (NOK1.5 billion) onshore contract for integrated drilling services on the massive Johan Sverdrup field offshore Norway.
Baker Hughes joins Norway's Odfjell, which was awarded two contracts worth $550 million for platform drilling services and use of the Deepsea Altantic semisubmersible drilling rig on the project last month.
The contract with Baker Hughes follows hot on the heels of contractor winning a significant contract on Statoil's UK North Sea Mariner heavy oil field. On Mariner, Baker Hughes has an eight-year contract for the design and supply of production chemicals and services, starting this month. However, it will be Schlumgerger providing the drilling services under a four-year integrated drilling and well services contract on Mariner.
Baker Hughes' contract on Johan Sverdrup, which covers cementing and pumping, completion, drilling and completion fluids, offshore cuttings handling, and integrated drilling services, will be valid for six years with a four-year extension option for the entire field life.
Johan Sverdrup is on the Utsira High in the Norwegian sector of the North Sea, 155km west of Stavanger, and is one of the five biggest oil fields on the Norwegian Continental Shelf. The field is about 1900m deep, in 110-120m water depth, and covers about 200sq km.
Drilling is due to start next year (2016). Johan Sverdrup contains some 1.4-2.4 billion boe, says Statoil. The $14 billion (NOK117 billion) Phase 1 of the development will comprise four bridge linked platforms.
"Together with Baker Hughes we will quickly establish an integrated operations team, working closely with the drilling and rig contractor Odfjell to plan and optimize well deliveries. This award will play an important part in driving performance and creating value for Johan Sverdrup,” says Øivind Reinertsen, senior vice president for the Johan Sverdrup field.
The Johan Sverdrup partnership consists of Statoil (operator), Lundin Norway, Petoro, Det norske oljeselskap and Maersk Oil.
Overall main contracts at a value of more than $3.35 billion (NOK 27 billion) and more than 45 equipment package contracts at a value of $430 million (NOK3.5 billion) have been awarded to suppliers with Norwegian invoice addresses.
Other contracts:
Aker Solutions won a $590 million detailed engineering contract on Johan Sverdrup.
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