Offshore staff
STAVANGER, Norway – Equinor has awarded Odfjell Drilling a letter of intent to drill 15 wells on the Breidablikk field in the Norwegian North Sea with the semisubmersible Deepsea Aberdeen.
Drilling is scheduled to start in the spring of 2022, and the campaign is estimated to last until the autumn of 2024.
The agreement includes nine optional wells. The estimated value of the fixed part of the agreement is $290 million. Additional costs include a number of integrated services, maintenance, modifications, mobilization, and demobilization.
The contract is estimated to create 200 man-years in Norway connected to the rig, and an additional 20-40 man-years related to support functions.
Equinor’s chief procurement officer Peggy Krantz-Underland said: “In this contract we have further developed the performance-based compensation system, enabling the supplier to increase their profit per well delivery by completing safe and efficient operations. We regard this as an important step towards reaching our ambition of shifting focus from rate per day to cost per well, a move we believe is important to ensure sustainable costs in the future.”
Last month Equinor and its partners submitted the plan for development and operation (PDO) for Breidablikk. Several contracts have been awarded, and Norwegian companies are expected to account for around 70% of the value creation in the development phase. Estimated field recovery is around 200 MMbbl and investments will be about NOK 18.6 billion ($2 billion).
All contracts are subject to the authorities’ approval of the PDO.
The license partners in Breidablikk are Equinor (operator), Petoro AS, Vår Energi AS, and ConocoPhillips Skandinavia AS.
Breidablikk is northeast of the Grane field in 127 m (416 ft) of water, and 185 km (115 mi) west of Haugesund.
10/05/2020
