Statoil Awards Integrated Drilling Contract

Statoil is awarding Baker Hughes Norway the onshore contract for integrated drilling services for Johan Sverdrup. The estimated contract value is NOK 1.5 billion and is valid for six years with a four-year extension option for the entire field life. The service will be provided locally from Stavanger.

For the Johan Sverdrup field Statoil (STO) has decided to invite the market to tender for integrated services in order to reduce total well costs and achieve more efficient well services. Baker Hughes will therefore provide the whole range of services within:

• Cementing and pumping
  
• Completion
  
• Drilling and completion fluids, as well as offshore handling of drill cuttings
  
• Integrated drilling services

Statoil has now signed several contracts to increase expertise and save costs, including this integrated drilling and well services (IDWS) contract for Johan Sverdrup.

“We are pleased to award this contract to Baker Hughes and believe that this will help achieve Johan Sverdrup's objectives of safe operations and efficient well deliveries and also support Statoil's industry efforts to reduce total well costs”, says Margareth Øvrum, executive vice president for Technology, Projects and Drilling.

“Drilling will commence in 2016. Together with Baker Hughes we will quickly establish an integrated operations team, working closely with the drilling and rig contractor Odfjell to plan and optimise well deliveries. This award will play an important part in driving performance and creating value for Johan Sverdrup”, says Øivind Reinertsen, senior vice president for the Johan Sverdrup field.

Facts: Johan Sverdrup
Recoverable resources are projected at between 1.4 and 2.4 billion barrels of oil equivalent in phase one.

The investment costs for phase one of the Johan Sverdrup development are estimated at some NOK 117 billion (2015 value).

The development concept for Johan Sverdrup phase 1 will consist of four installations, including a utility and accommodation platform, a processing platform, a drilling platform and a riser platform, in addition to three subsea templates for water injection.

The platforms will be bridge-linked. The project aims at a recovery rate of 70% for Johan Sverdrup.

The Johan Sverdrup partnership consists of Statoil (operator), Lundin Norway, Petoro, Det norske oljeselskap and Maersk Oil.

Overall main contracts at a value of more than NOK 27 billion and more than 45 equipment package contracts at a value of NOK 3.5 billion have been awarded to suppliers with Norwegian invoice addresses.