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Equinor extends multiple drilling contracts offshore Norway

Equinor is exercising two options to extend contracts with Archer AS, KCA Deutag Drilling Norway AS and Odfjell Operations AS for another four years.

These options for drilling services on fixed installations on the Norwegian Continental Shelf will provide 2,000 jobs per year, with an estimated value of NOK 18.4 billion. Contracts were signed in 2018 with three option periods of two years, with the first two-year option being exercised in 2022. The new contract period runs for four years, beginning 1 October 2024.

“We appreciate the good collaboration we have had with these suppliers for many years, and have therefore added a fourth option of two years in addition to those agreed in the original contracts,” said Mette H. Ottøy, Equinor’s Chief Procurement Officer. “This will help ensure predictability and form the basis for continuous improvements over time. This is a clear signal that we have long-term plans for cooperation with all three suppliers.”

In this option round, Equinor conducted a limited competition evaluating drilling suppliers on certain fixed installations based on technical and commercial criteria. It resulted in some redistribution between these suppliers on four of the 19 installations in the contract portfolios.

Services delivered to Equinor are drilling, completion, intervention, plugging, maintenance and modifications on 19 of Equinor’s fixed installations. There is also support from sub-contractors for some of these services, generating additional jobs along the Norwegian coast.

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