Equinor has, on behalf of the licence partners, awarded Apply a framework agreement for engineering and installation services on the North Sea Statfjord field. According to the agreement the parties will collaborate in new ways while carrying out the work on Statfjord safely and efficiently.
The agreement covers overhaul, replacement and modification deliveries on the three Statfjord platforms. The period of agreement is seven years, plus a three-year option. The agreement will take effect on 1 September 2020.
“Our ambition is to become a leading late-life operator on the Norwegian continental shelf. In order to succeed, we must apply new working methods to reduce costs. This will create opportunities for new investments in late-life fields, so that we can extract the last resources in a profitable way and with low carbon emissions,” says Kjetil Hove, senior vice president for the new business area Field Life eXtension (FLX), that was established on 1 April this year.
New collaboration model
The supplier will be integrated in the FLX organisation in new premises at Forus. The companies will collaborate on the design and planning of the work to be carried out. Common drivers for the parties have been established to support the ambitions of Equinor FLX.
“With this award we are establishing a closer collaboration with the supplier. Together we will drive simplification and standardization to perform the work safely and cost-effectively. We will also involve sub-suppliers early to achieve optimal solutions and common value creation. If we are to succeed on FLX’s ambitions, we must radically change the way we work together,” says chief procurement officer Peggy Krantz-Underland.
The companies will focus on simplified work processes, standardised products and solutions, and at the same time benefit from digital technology, such as 3D printing.
Creating higher value and extending field life
Production from Statfjord will be extended by maturing new reserves for recovery and upgrading platforms as required. Around 100 new wells will be drilled in the period up to 2030. They will help maintain the current Statfjord production level beyond 2025, strongly increasing the activity level on the field and requiring considerable investments.
Statfjord A was scheduled for decommissioning in 2022, however, it has been decided to extend the field life to 2027. The lives of the Statfjord B and C platforms will be extended from 2025 to 2040. This will sustain high value creation from the field and secure profitable jobs. During 40 years of production, Statfjord has generated NOK 1 600 billion in gross revenue for the owners and Norwegian society.
The licensees on Statfjord are Equinor Energy AS (operator), Vår Energi A/S and Spirit Energy.