Statoil Awards Baker Hughes Services Contract for Johan Sverdrup

Statoil awarded Baker Hughes the onshore contract for drilling services for Johan Sverdrup. The 6-year contract is valued at an estimated NOK 1.5 billion (€170 million), and includes a 4-year extension option for the entire field life.

‘Baker Hughes will therefore provide the whole range of services within: Cementing and pumping; Completion; Drilling and completion fluids, as well as offshore handling of drill cuttings; Integrated drilling services’ reads the note released by Statoil on Monday.

Statoil said that the contract will help it cutting costs.

“We are pleased to award this contract to Baker Hughes and believe that this will help achieve Johan Sverdrup's objectives of safe operations and efficient well deliveries and also support Statoil's industry efforts to reduce total well costs”, Margareth Øvrum, executive vice president for Technology, Projects and Drilling, commented. 

Drilling is expected to commence in 2016. According to Statoil, recoverable resources are projected at between 1.4 and 2.4 billion barrels of oil equivalent in phase one.

Last month, Statoil signed a contract with a joint venture consisting of Kvaerner and KBR for construction of the topside for the utility and living quarters platform. The contract was valued at NOK 6.7 billion (€760 million).