Statoil Awards NCS Maintenance, Modifications Contracts

Statoil has awarded maintenance and modification agreements worth NOK 24 billion for the company’s installations on the Norwegian continental shelf (NCS) and for the onshore plants at Sture, Kollsnes, Kårstø and Melkøya.

Competition agreements for more complex modification services have also been awarded. Maintenance and modifications are essential for safe and efficient operation of Statoil (STO)’s offshore and onshore installations. New compensation formats have been prepared to encourage continuous improvement and higher productivity.

“These awards will strengthen the NCS competitiveness and stimulate long-term activity and value creation. We look forward to cooperating with the suppliers, and jointly achieve lasting and sustainable improvements with regard to efficient production, safe operation and high integrity at our plants,” says senior vice president for operations technology of Development and Production Norway (DPN), Kjetil Hove.

This time the company decided to split the whole portfolio in two: main contractor agreements and competition agreements. The key supplier agreements portfolio has an estimated total value (including options) of NOK 24 billion. The contract period is six years plus a four-year extension option, and starts in the first quarter of 2016. Remaining options of existing maintenance & modifications agreements will not be exercised.

The main contractor agreements have been awarded to the following companies:
 

• Aibel AS
• Apply Sørco AS
• Reinertsen AS
• Wood Group Mustang Norway AS

The competition agreements portfolio covers a period of 10 years that starts in the first quarter of 2016. The agreements form the basis for individual project competitions where one, two or more suppliers are invited to participate.

The competition agreements have been awarded to the following companies:
 

• Aibel AS
  
• Aker Solutions AS
  
• Apply Sørco AS
  
• Reinertsen AS
  
• Wood Group Mustang Norway AS
   

The awards reveal that the company is continuing its important improvement effort together with familiar maintenance & modification suppliers, but they also present a new element as a new player is included in the agreement portfolio.

“The procurement we have made is part of the effort of creating a more competitive industry. The importance of making continuous improvements and changing our working methods has run as a thread through the whole process. In the time ahead we will work closely with the suppliers to ensure that this work is pursued when the agreements enter into force,” says senior vice president for procurements in Statoil, Jon Arnt Jacobsen.

A comprehensive procurement process has been carried out, where Statoil has worked closely with the bidders to find the best solutions based on evaluations of health, safety and environment (HSE), technical and commercial criteria.