Norwegian company Statoil has signed a Nkr6bn ($764m) contract with Archer, a global oil services company.
Archer will provide drilling services for 12 of Statoil’s 18 fixed platforms located on the Norwegian Continental Shelf (NCS) over the next four years.
The deal also comprises three two-year contract extension options. If Statoil opts to exercise all these options, the total value of the contract will be Nkr15bn ($1.9bn), which does not include costs from modifications and upgrades of the platforms in the portfolio.
Following a transition period to prepare for operations, the contract will be effective from 1 October this year.
In a separate contract, Archer is offering drilling services for Statoil for 13 platforms on the NCS and two platforms in Brazil.
Following commencement of the contracts, Archer plans to increase its employee base by 400 people to deliver wells more efficiently. The new contract terms also require Archer to integrate, collaborate and take additional responsibilities on location with both Statoil and its nominated service contractors.
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By GlobalDataArcher CEO John Lechner said: “The award of a large majority of Statoil-operated platforms in the NCS is a direct result of the hard work, innovation and commitment demonstrated by all of our employees, both onshore and offshore, to deliver a high level of operational safety and technical efficiency while maintaining a safe working environment on Statoil operations.
“We look forward to continuing our working relationship with Statoil both in Norway and Brazil and being an integral part of this dynamic industry shift to integrated operations, maintenance and well services in combination with Statoil’s nominated Service Contractors.
“The eventual integrated scope will require engineering and rental services, and thus increase our projected revenue and profitability in Norway going forward.”
