Norwegian energy giant Equinor has awarded Altus Intervention and Archer Integrated Services framework contracts for supplying integrated wireline services within well intervention to Equinor’s fixed platforms.
Altus Intervention will provide services at the Gina Krog, Grane, Gudrun, Johan Sverdrup, Kvitebjørn, Oseberg, Martin Linge, Sleipner, Valemon, Veslefrikk, Heidrun, Snorre and Visund facilities. Archer Integrated Services will provide services at the Gullfaks and Statfjord platforms.
The estimated total value of the contracts is close to one billion NOK per year (around $117 million), and the contracts are awarded for a fixed period of around five years from May 2021.
The contracts include three two-year extension options. Optionality for wireline services to other areas, such as mobile units, are also included.
"The supplier companies have their main offices in Stavanger and Sandnes and the contracts are estimated to employ around 500 people," Equinor said.
The new intervention contracts will cover a total responsibility for wireline intervention services. Separate contracts used to be awarded for cable and mechanical services, perforation, logging as well as tractor and electro-mechanical services. All these services will now be covered by the integrated wireline services, and the suppliers have formed alliances to be able to offer complete deliveries, Equinor explained.
Altus is collaborating with Baker Hughes Norge AS and Archer has formed a collaboration with Welltec Oilfield Services AS and Schlumberger Norge AS. Cross-training of employees will be carried out to enhance the level of competence across the alliances, Equinor said.
"This is the result of a long-term strategy to achieve more holistic solutions, and an opportunity to modernize the intervention services. It will give the suppliers stronger authority and responsibility and enable more performance-based compensation schemes. We are currently intensifying our effort of building one team together with the suppliers,” says Peggy Krantz-Underland, Equinor’s chief procurement officer.
"The main goal of the contract setup is to encourage safe and effective intervention operations. Focus has been placed on utilizing new technology and digital solutions, having plans for emission reductions, reducing operational costs and the opportunity for remote operations by moving personnel from offshore to onshore locations," Equinor said.
Erik G. Kirkemo, Equinor’s senior vice president for drilling and well operations said: “We have in general been satisfied with the intervention services provided by our suppliers, and we are looking forward to improving further together with two strong supplier alliances. We want to move in the same direction as we do in other parts of our drilling and well operations, with onshore operations centers supporting several offshore operations."
Archer, with its partners, will provide cased hole mechanical wireline services, tractor and powered mechanical services as well as electric-line logging services.
"Based on the current operational plans, the total estimated turnover from the contract will be approximately NOK 2.5 billion (USD 292,6 million)," Archer said.