DeepWell Secures Major Contract with Statoil

DeepWell has secured a long-term contract for provision of mechanical wireline services to Statoil. The contract value for the firm period, including options for add-on services, is estimated to exceed NOK 1 billion over a four-year period, or more than NOK 2 billion if optional periods are included.

Contract for the next decade
DeepWell’s existing contract with Statoil dates back to 2009. The new contract secures activity and a more predictable future for DeepWell and its employees for the next decade.

“The award is seen as proof of DeepWell’s strong operational performance under the existing contract with Statoil and its competitive position in the market”, says DeepWell chief executive officer Martha Kold Bakkevig.

The contract covers provision of mechanical wireline services for 10 fixed installations (Gullfaks (A, B & C) Statfjord (A, B & C), Snorre (A & B) and Sleipner (A & Vest) and 11 Mobile Drilling Units.

The contract has a fixed term of 4 years plus three 2-year extension options, for a potential contract period of 10 years. Additional optional scope under the contract includes logging and other conveyance services.

DeepWell is committed to support Statoil in achieving increased efficiency and reduced overall cost. “Our approach is both holistic and long term, meaning we have invested in competence, systems and technology to allow for faster and more precise work, higher share of value adding activities in the well, and reduced personnel on board”.

The Statoil contract represents one of two large fixed contracts on the NCS for years to come. “The award are of great motivation after challenging years for the industry. We intend to make use of this strong foundation for the benefit of existing and new customers”, concludes Bakkevig.