Maersk Drilling and Aker BP sign major contract founded on joint alliance

Maersk Drilling and Aker BP have agreed to a one-year contract to deploy the Maersk jackup on the Norwegian shelf from June 2019. The contract is founded on the alliance that the parties entered into in 2017.

The Maersk Integrator will become the first rig to be contracted fully under the scope of the alliance among Aker BP, Maersk Drilling and Halliburton. When the jackup rig finishes its current campaign on Gina Krog in June 2019, it will go directly to Ula for a new one-year assignment with Aker BP.

The tripartite alliance was announced last year and focuses on working in collaborative relationships which maximize value for all parties involved. This is established in contracts using a shared incentives model, thereby securing mutual commitment to reduce waste and deliver value. The contracts are based on market-rate terms but add the possibility of a sizable upside for all parties, based on actual delivery and performance.

“This contract really symbolizes the close working relationship between Aker BP and Maersk Drilling that we established in late 2017,” Jørn Madsen, CEO of Maersk Drilling, said. “This is the first contract fully founded on our alliance framework. With shared incentives, all parties will work as one team towards delivering safe and efficient operations at the lowest possible well cost.”

In the tripartite jackup alliance, the parties are exploring new ways of collaborating to increase the efficiency of drilling campaigns. In addition to setting up shared goals and incentives, it includes integrated project organizations, aligned safety procedures, and a one-team mindset guided by the principles of ‘best man for the job’ and “best for the alliance”.

Maersk Integrator is an XL Enhanced ultra-harsh environment jackup rig that is customized for the North Sea. The rig is currently stationed at the Gina Krog field on the Norwegian shelf, where it has been engaged in its first drilling campaign since June 2015. When that campaign finishes in June 2019, the rig will move south to the Ula field to deploy for Aker BP. As an integral part of the alliance framework, Halliburton will function as service provider for the new campaign.

“With this contract, we will truly see the value of our alliance as we work together to reduce waste and lower the cost per barrel on Ula,” Tommy Sigmundstad, SVP Drilling and Wells at Aker BP, said. The collaboration between our companies is under continuous development due to the alliance, and we expect to gain more and more mutual benefits from working together in new and innovative ways.”

Maersk Drilling, Aker BP and Halliburton entered the joint jackup alliance in November 2017. The alliance aims at lowering the cost per barrel and increasing profitability for the partners through implementation of digital solutions, increased collaboration efficiency, and standardization and simplification of processes. It is formalized in a five-year agreement with the option to extend for an additional five years.

With this contract, Maersk Drilling has added a total of 2,373 days and US $3131 million to its backlog in 2018.