Equinor Extends Drilling Contracts Totaling $1.75 Billion

Equinor Extends Drilling Contracts Totaling $1.75 Billion
The Johan Sverdrup field in the North Sea (Image credit: Arne Reidar Mortensen / Equinor)

Equinor, on behalf of the partners, is exercising two options to extend contracts with Archer AS, KCA Deutag Drilling Norway AS and Odfjell Operations AS for a total of four years.

The options for drilling services on fixed installations on the Norwegian continental shelf provide jobs for 2000 people per year and have an estimated value of $1.75 billion.

The contracts were signed in 2018 with three option periods of two years. The first two-year option was exercised in 2022. The new contract period runs for four years from October 1, 2024.

"We appreciate the good collaboration we have had with these suppliers for many years, and have therefore added a fourth option of two years in addition to those agreed in the original contracts. This will help ensure predictability and form the basis for continuous improvements over time. This is a clear signal that we have long-term plans for cooperation with all three suppliers," adds Mette H. Ottøy, Equinor’s chief procurement officer.

In this option round, Equinor has conducted a limited competition evaluating drilling suppliers on certain fixed installations based on a combination of technical and commercial criteria.

This has resulted in some redistribution between these suppliers on four of the 19 installations in the contract portfolios.

The drilling contracts cover the following installation—field name/awarded to:

  • Grane—Odfjell
  • Gullfaks A, B & C—Archer
  • Heidrun—KCAD
  • Johan Sverdrup—Odfjell
  • Kvitebjørn—KCAD
  • Njord—KCAD
  • Oseberg B, C, Sør & Øst—KCAD
  • Sleipner A—Archer
  • Snorre A & B—Archer
  • Statfjord A, B & C—Archer
  • Visund—Odfjell

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