Contractors Unlimited

Statoil Enter Into Frame Agreements Worth NOK 49 Billion

Statoil logo Statoil is entering into frame agreements involving maintenance and modification work valued at NOK 49 billion, options included.

The agreements, which have duration of four years with two two-year extension option, will occupy more than 5,000 people during the period.

Five companies have given their assent to the letters of intent sent by Statoil on behalf of the licence partners in question. These companies will carry out maintenance and modification work on all of Statoil's installations on the Norwegian continental shelf in the coming years.

The agreements also apply to the land facilities on Sture and Melkøya, as well as Kårstø and Kollsnes where Statoil - in its capacity as technical service provider - is signing agreements on behalf of the operator, Gassco.

These five companies are:
  • Aibel AS
  • Aker Solutions AS
  • Reinertsen AS
  • Fabricom AS
  • Apply Sørco AS
Fabricom and Apply Sørco are new suppliers of maintenance and modification agreements for Statoil.

More Diversity

Statoil has increased the number of its maintenance and modification work suppliers from three to five.

"The award of the contracts shows that our strategy of increasing diversity, competition and flexibility in this market has been a success," says Anders Opedal, senior vice president of procurement in Statoil.

The process leading up to the award of the contracts has placed particular emphasis on health, safety and the environment. In addition, it has been Statoil's intention to ensure flexibility in order to utilise capacity on the supplier market.

"By means of increased competition and the introduction of new suppliers, we believe that we can improve delivery quality while managing to maintain the right cost level," says Opedal.

Standardised Agreements

It is the first time Statoil enters into this type of agreement following the merger with the oil and energy division of Hydro in 2008.

Although previously there were several different types of agreement, they have now been standardised. This will enable Statoil to follow up the contracts in a more streamlined manner.

"The maintenance and modification agreements are extremely important for Statoil's operations. We expect these suppliers to give both our offshore and land-based plants good quality and regularity," says Øystein Michelsen, Statoil's executive vice president for Exploration and Production Norway.

Frame Agreements:

Aibel AS:
  • Statfjord A/B/C
  • Oseberg F/C/Ø/S
  • Huldra/Veslefrikk
  • Njord A/B
  • Kristin
  • Norne
  • Snøhvit
Aker Solutions AS:
  • Snorre A/B
  • Gullfaks A/B/C
  • Visund
  • Åsgard A/B
Reinertsen AS:
  • Troll A/B/C
  • Heimdal
  • Grane
  • Heidrun
Fabricom AS:
  • Sleipner
Apply Sørco AS:
  • Kvitebjørn
  • Brage
Aibel AS:
  • Kollsnes**
  • Kårstø**
  • Sture
Complete Portfolio:

Estimated total value for 4-year contract period:* - NOK 24 400 mill

Estimated total value for 4-year contract period + 2 x 2 year options:* - NOK 48 800 mill

*) These are frame agreements and provide an estimate of how much Statoil will spend in buying services from these companies in the coming years. The amounts are not fixed.

**) Statoil fulfils the role of Technical Service Provider on behalf of Gassco, the operator.

Statoil (OSE: STL, NYSE: STO) is an international energy company headquartered in Norway. It has more than 35 years of experience from oil and gas production on the Norwegian continental shelf and has currently operations in 40 countries. Statoil is among the world's largest offshore oil and gas operators and is seen as a leader in technology and resource management. Statoil has 29,000 employees worldwide, and is listed on the New York and Oslo stock exchanges with a market capitalisation of approximately USD 70 billion. Equity production in 2009 was 1,962 000 boepd and booked reserves of oil and gas is reported at 5.4 billion barrels.

Published 30/06/2010

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