A new compensation format will help improve efficiency as
Equinor said it has awarded framework agreements to five suppliers to provide safety and automation systems for the company’s installations on the Norwegian continental shelf (NCS) and onshore plants in Norway, as well as international activities and for new development projects.
Total value of the five-year fixed period of agreement is estimated at just above NOK five billion ($557,000), Equinor said. Three five-year options are additional, depending on the lifetime of each installation.
| Overview of installations per supplier | |
|---|---|
| Supplier | Installations |
| Kongsberg Maritime | Norne, Heidrun A and B, Åsgard A and B, Kristin, K-lab Kårstø, Statfjord A, B, C and Johan Sverdrup. Mariner has a separate agreement. |
| Siemens | Troll C, Oseberg field centre, Oseberg East, Oseberg South, Njord A + B, Visund and Snorre A and B. |
| ABB | Kårstø, Kollsnes, Mongstad, Sture, Tjeldbergodden and Snøhvit (all onshore plants) Troll A, Oseberg C, Gullfaks A, B, C, Sleipner, Aasta Hansteen, Johan Castberg, Draupner, Grane, Gudrun, Heimdal and Veslefrikk. Peregrino has a separate agreement. |
| Honeywell | Valemon, Kvitebjørn and Troll B. Kalundborg has a separate agreement. |
| Emerson | Gina Krog and Martin Linge. |
“The agreements include a new compensation format that rewards safe and effective deliveries, aiming for closer collaboration and smarter maintenance and modifications. If we jointly succeed in reducing our total costs, it will benefit everyone involved in the effort,” said Peggy Krantz-Underland, chief procurement officer (CPO).
The agreements cover daily operation and ensure continuous maintenance, modifications and upgrading of safety and automation systems, "the brain of the plants". Cyber security is also becoming an increasingly important part of the work scope, Equinor said.
“Safety and automation systems are central for us to be able to work safely on the NCS. They will help us meet our safety requirements and transform the NCS for continued high value creation and low emissions during the next decades. To achieve this, we need to strengthen our competitiveness and collaborate efficiently with our suppliers,” said Frode Abotnes, vice president for the technical multifield center of operations technology in Development and Production Norway (DPN).
“We will spend the first two years of these agreements on establishing a standard for how to solve the tasks. The deliveries that are most effective and help reduce our costs will be rewarded. We want this to be a win-win situation for both us and the suppliers,” Abotnes said.