Equinor said it has awarded a group of drilling service contracts worth about NOK 2.5 billion ($286 million), exclusive of options, to several suppliers.
The services will be delivered to both new and existing fields on the Norwegian continental shelf (NCS). The contracts are for a three-year fixed term, with five two-year options for all awards.
Contracts for services related to liner hangers were signed in Equinor’s digital laboratory at Forus, Stavanger, on Tuesday, while contracts for additional completion and downhole monitoring have been signed earlier, the Norwegian energy company said.
“These contacts will help us continue our safe and efficient drilling and well operations. The suppliers are specialists that we have worked with before, and we know what they stand for. We look forward to continuing our good cooperation,” said Geir Tungesvik, Equinor’s senior vice president, Drilling & Well.
The contracts now signed cover niche deliveries complementing the integrated drilling and well service contracts signed in 2018.
“We have standardized the contract set-up between various suppliers. This simplifies the collaboration and creates win-win solutions. For these services, we do not buy services from the biggest suppliers only, but also from small-size suppliers with the required specialist competencies,” said Peggy Krantz-Underland, Equinor’s chief procurement officer.
| Contracts | ||
|---|---|---|
| Liner Hangers | Additional Completion | Downhole Monitoring |
| Halliburton AS | Halliburton AS | Halliburton AS |
| Schlumberger Norge AS * | Schlumberger Norge AS | Schlumberger Norge AS |
| Baker Hughes Norge AS | Baker Hughes Norge AS | Baker Hughes Norge AS |
| Weatherford Norge AS | Weatherford Norge AS | Roxar Flow Measurement AS |
| Ramex AS | Weatherford Norge AS | |
| NOV Wellbore Technologies - NUF | ||
| Petroleum Technology Company AS | ||
| TCO AS | ||
| Interwell Norway AS | ||
| Welltec Oilfield Services (Norway) |
* Schlumberger has signed a letter of intent for services related to liner hangers. The final contract is scheduled to be signed at a later stage.
The services related to liner hangers and additional completion are based on framework contracts with standardized conditions where the volume may vary. The estimated value is NOK 1 billion ($114 million) and NOK 500 million ($57 million) respectively for three years.
Liner hangers reduce the length of the last liner set in the well by several hundred meters by allowing the liner to be suspended below the ground, rather than extending a single casing string to the top of the wellbore. This saves metal/cementing costs and time for rig and personnel.
Additional completion is a collective term for equipment and service deliveries that help prepare the well for production.
The downhole monitoring contracts were awarded in March, covering a predetermined scope at a value of about NOK 1 billion ($114 million) for three years.
Downhole monitoring includes technologies that use an electric or fiber-optic cable run through the well, with a gauge at the bottom measuring pressure and temperature. It is not possible to complete the well without this technology.
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