Vår Energi In Strategic Partnership Deals with Aker Solutions, Havfram, and Saipem

June 30, 2022

Vår Energi's Goliat field in the Barents Sea - For illustration only - Credit: Vår Energi
Vår Energi's Goliat field in the Barents Sea - For illustration only - Credit: Vår Energi

Norwegian oil and gas company Vår Energi on Thursday signed strategic partnership agreements with Aker Solutions AS, Havfram, and Saipem for SPS/SURF deliveries, in preparation for record high activity level on the Norwegian Continental Shelf (NCS).

The strategic partnership with Aker Solutions, Havfram and Saipem covers fabrication, delivery, and installation of subsea production equipment for all Vår Energi operated assets and projects on the NCS.

Vår Energi CEO, Torger Rød, says: "We are very pleased to have secured such a strong team supporting us to develop our projects, through priority, competence, and capacity. Broader, long-term, and more open collaboration between suppliers and operators drives value creation. It reduces cost and increase efficiency and predictability. Strong partnerships with key suppliers will develop the most sustainable solutions, and strengthen our competitiveness."

The contract duration is five years plus two options of two years each – potentially up to nine years.

One for All - All for One

"The strategic partnership model is built on a one-for-all and all-for-one principle and contrasts with the conventional model of separate contracts with split scope and responsibilities," Var Energi said.

VP Contracts & Procurement in Vår Energi, Annethe Gjerde, said: "We always push for operational excellence through sustainable solutions, and with a collaboration model like this, we will see more efficient and improved end-solutions. Strategic partnering and early involvement of the suppliers secure more efficient planning and implementation of projects. A strong partnership will provide added value for all parties, which we also see as part of the standardized supply chain behavior guideline developed by a joint industry effort facilitated by the Norwegian Oil and Gas Association."Strategic Partners: Odd Strømsnes (Ceo Havfram), Luca Giommi (Cfo Saipem Drilling Norway), Torger Rød ( Ceo, Vår Energi) And Vigleik Sexe (Svp Subsea Norway And Africa, Aker Solutions).

Vår Energi said it was seeking increased overall collaboration with suppliers throughout the value chain with a clear ambition of more sustainable and efficient production of oil and gas.

Vår Energi produces almost 250 000 boe per day from a robust portfolio of 36 producing fields, with plans to grow its output to 350 000 boe by 2025.

While Vår Energi did not share financial details, Aker Solutions released a separate statement sharing more info.

Significant contract award

Aker Solutions said its scope includes the full range of equipment and services to deliver complete subsea production systems, including umbilicals, all based on Aker Solutions' standard product portfolio. It also includes front-end engineering and design work (FEED) for the upcoming field developments. The work under the frame agreement is expected to start during 2022.  

According to Aker Solutions, the value of the work to be called off under the frame agreement will only be recognized by Aker Solutions as order intake when each new project is called off, in the Subsea segment. The total value of work called off during the lifetime of the frame agreement is expected as a minimum to correspond to what Aker Solutions defines as a significant contract award. Aker Solutions defines a significant contract as being between NOK 1.5 billion ($150,7 million) and NOK 2.5 billion ($251,2 million).



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