Equinor Extends Offshore Drilling Contracts with Archer, KCA Deutag, and Odfjell Drilling

Norwegian oil and gas firm Equinor has exercised extension options worth 8 billion Norwegian crowns (~$898,7 million) with Archer, KCA Deutag, and Odfjell Drilling. 

The contracts include drilling, completion, intervention services, plugging, maintenance, and modifications on 19 of Equinor’s permanent installations.

The four-year agreements were signed in 2018. Exercised for two years from the end of 2022, the options cover the same scope of work as previously regulated by the contracts.

According to Equinor, the contracts provide jobs for around 2000 people each year. 

"We have had a long-term and good cooperation with the suppliers, with safe and efficient operations as our top priority. These contract extensions will help ensure predictability for the parties and safe and efficient well deliveries. Together with our suppliers, we want to develop these services further to ensure long-term value creation from our installations,” says Erik Gustav Kirkemo, senior vice president for drilling and well operations. 

"The contracts and services have been developed in close cooperation with our suppliers over several years and will help ensure common competitiveness and sustainable activity level. We appreciate suppliers who, in addition to being competitive, help develop our industry further,” says Mette Halvorsen Ottøy, chief procurement officer.

In a separate statement, Archer confirmed it had won a two-year contract extension for platform drilling services on twelve Equinor's platforms. The extension will start on October 1, 2022, in direct continuation of the current contract. The company said the deal secured it around NOK 5.0 billion (~561,8 million) in estimated backlog for 12 of Equinor’s platforms in the North Sea

Dag Skindlo, CEO of Archer, said: "We are delighted to continue our operations for Equinor in the North Sea for an additional 2 years. We have over time shown safe and strong operational performance.  Archer is dedicated to further develop our OneArcher operating model to provide Equinor with safe, efficient and cost-effective solutions while contributing to both Archer's and Equinor’s ESG roadmap.”