Equinor to industrialize plugging operations on the Norwegian continental shelf
Island Drilling has been awarded a three-year contract for well plugging on Equinor-operated fields on the Norwegian continental shelf (NCS) using the Island Innovator semi-submersible rig. In addition, the oil service companies Archer Oiltools and Baker Hughes Norge have won framework agreements for plugging services.
Island Innovator is a mobile rig specially designed for well plugging. The Norwegian rig company will now be on assignment for Equinor for several years, start-up scheduled for early 2026.
The contract, worth an estimated $330 million, also carries five one-year options. The scope of work under the contract includes mobilization, planned upgrading and certain integrated drilling services.
According to the plan Island Innovator will permanently plug 15–20 wells annually for a total of nine licenses. These wells will no longer be used for oil or gas production. The rig will plug subsea wells at Heidrun, Snorre and Norne, among others.
In addition to the Island Innovator contract, Equinor has awarded framework agreements to the oil service companies Archer Oiltools and Baker Hughes Norge for full-range delivery of plugging services with a duration of three years, with two two-year options. Archer Oiltools has also been assigned responsibility for planning plugging operations for 26 wells to be plugged from Island Innovator, in addition to options to perform the work.
