Equinor awards $2.1 billion contract extensions for drilling services

Norwegian energy group Equinor ASA on Friday extended contracts for drilling and specialist services valued at nearly $2.14 billion (20 billion Norwegian kroner), the company said in a statement.
The company said it was extending its contracts with Baker Hughes Norge, Halliburton AS and Schlumberger Norge AS for integrated drilling and well services on Equinor-operated fields on the Norwegian continental shelf. The contract extension is valued at around NOK14 billion and covers 18 fixed platforms and 10 mobile rigs, Equinor said.
The company said it is also extending its contracts for additional services with the same companies and 13 other suppliers valued at nearly NOK6 billion.
The projects will provide work to around 2,000 people, while the specialist services will employ some 600 people.
“Long-term supplier relations have proved to be important in an industry swaying rapidly between good and more challenging times. It ensures predictability and is important to develop this industry in a safe, efficient and sustainable way,” Mette H. Ottøy, chief procurement officer at Equinor, said in a statement.
“We are pleased to extend these contracts, and it’s an expression of the good collaboration with our suppliers. These contracts are central in our value creation on the NCS,” Ottøy said.
The contracts will apply for two years starting June 1.