Equinor ASA has extended a series of major supplier agreements for drilling and well services, with a combined value of about NOK 17 billion.
The extensions are aimed at sustaining production on the Norwegian continental shelf, maintaining operational activity and supporting consistent energy supply to Europe.
The company has activated one-year extension options for three integrated drilling and well service contracts, alongside two-year extensions for 18 corporate framework agreements covering specialised services associated with these operations.
The integrated drilling and well services contracts are valued at NOK 8.3 billion, while the framework agreements for specialist services are expected to generate around NOK 4.3 billion annually over a two-year period.
Contracts for integrated drilling and well services have been awarded to Baker Hughes Norge AS, Halliburton AS and SLB Norge AS. These companies, along with an additional 15 suppliers, have also secured framework agreements for specialised services. The agreements are designed to ensure access to the expertise and advanced technologies required to improve efficiency in well operations and adapt to evolving operational demands.
“These agreements are among the largest we have, and they are crucial for activity on the Norwegian continental shelf. New wells enable us to maintain high production and deliver stable energy to Europe. This is particularly important at a time of turbulence in the energy markets,” says Jannicke Nilsson, chief procurement officer.
The contracts are expected to support around 2,500 jobs and will cover operations across both fixed installations and mobile drilling rigs on the Norwegian continental shelf.
As the region matures, drilling and well activities are becoming increasingly vital to sustaining output levels. Equinor aims to maintain production at approximately 1.2 million barrels of oil equivalent per day through to 2035.
“New wells are expected to account for around 70 percent of Equinor’s production in 2035. This involves both more wells and more well interventions, which must be delivered faster and significantly more cost-efficiently than today. That requires closer collaboration with the supplier industry and increased use of technology and standardisation,” says Rune Nedregaard, senior vice president for Wells.
“We are now moving to a greater extent towards industry standards. Together with our suppliers, we will use this to simplify work processes, reduce costs and increase pace, while maintaining safety,” Nedregaard continues.
