Norwegian oil firm Statoil has awarded NOK30bn ($5bn) contracts to three companies for drilling services on fixed installations in the Norwegian continental shelf (NCS).

The scope of work, which will be carried out by KCA Deutag, Odfjell Drilling and Archer, includes drilling new wells, plugging old wells and maintenance of drilling facilities on 18 of Statoil’s 20 fixed platforms.

Statoil executive vice president for the technology, projects and drilling business area, Margareth Øvrum, said: "Efficient drilling and well services on existing fields are important to maintain production on the NCS and to deliver according to Statoil’s production forecast of 2.5 million barrels of oil equivalent a day in 2020."

KCA Deutag will carry out contracts on Statoil’s Gullfaks A, B and C, and Oseberg B, C, Sør and Øst installations.

Odfjell’s contracts cover Snorre A and B, Sleipner A, Heidrun, Njord, Visund, Grane and Brage installations, while Archer will perform work on Statfjord A, B and C installations.

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By GlobalData
"Safe and efficient drilling operations are fundamental for the company."

Statoil senior vice president for the drilling and well cluster, Øystein Arvid Håland, said safe and efficient drilling operations are fundamental for the company and the suppliers play a key role in this regard.

"They are the ones who carry out all the drill floor operations, which must be done in a safe and good manner every day," said Håland.

"The suppliers we have chosen have over time demonstrated a will and ability to meet Statoil’s strict requirements for health, safety and environment."

Statoil said the duration of the contracts is for four years, plus options for three two-year extensions, which would potentially bring the total length of the contracts to ten years, starting from October 2012.

Image: The drilling contracts represent Statoil’s largest award on the NCS since 2010; Photo courtesy of: Statoil.