Equinor renews drilling services contracts for $1.75 billion

Equinor announced on Wednesday the renewal of three contracts worth USD 1.75 billion for drilling services on fixed installations on the Norwegian continental shelf.

The contracts were initially signed in 2018 with Archer, KCA Deutag Drilling Norway and Odfjell Operations. They included three two-year options, the first of which was exercised in 2022. The new contract period will run for four years commencing October 1, 2024.

Services included are drilling, completion, intervention services, plugging, maintenance and modifications on 19 of Equinor’s fixed installations. The work is expected to create 2,000 jobs per contract year. Prior to the extension, Equinor conducted a limited competition evaluating drilling suppliers on a combination of technical and commercial criteria.

Mette Ottøy, Equinor’s chief procurement officer, said, “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.”

Image: Lizette Bertelsen, Jonny Engelsvoll ©Equinor