#statoil Awards $2.76bn In M&M Deals #ncs #offshore #mmprojects

By 15th December 2015 Industry News No Comments

Norway’s state-run Statoil announced Tuesday that it has awarded $2.76 billion (NOK 24bn) in maintenance and modification (M&M) deals for the company’s installation installations on the Norwegian Continental Shelf (NCS) and for onshore facilities at Karsto, Melkloya, Sture and Kollsnes. Competition agreements for more complex modification services have also been awarded, the company said.

Splitting The Entire Portfolio In Two

The Norwegian major opted to split the whole portfolio in two: main contractor agreements and competition agreements. As noted, the key supplier agreements portfolio has an estimated total value (including options) of NOK 24 billion. The contract period is six years plus a four-year extension option, and begins in 1Q16. Remaining options of existing maintenance & modifications agreements will not be exercised, Statoil said.

Maintenance work on the Norne FPSO; Source: Statoil, (Photo: Rune Solheim)

The main contractor agreements were awarded to the following companies: Aibel, Apply Sørco, Reinertsen and Wood Group Mustang Norway.

The competition agreements portfolio covers a period of 10 years that begins in 1Q16. The agreements form the basis for individual project competitions where one, two or more suppliers are invited to participate.

The competition agreements have been awarded to the following companies: Aibel, Aker Solutions, Apply Sørco, Reinertsen and Wood Group Mustang Norway.

Statoil says a comprehensive procurement process has been carried out, where the company has worked closely with the bidders to find the best solutions based on evaluations of HSE, technical and commercial criteria.

Management Commentary

Statoil’s senior vice president for operations technology of Development and Production Norway (DPN), Kjetil Hove, said: “These awards will strengthen the NCS competitiveness and stimulate long-term activity and value creation. We look forward to cooperating with the suppliers, and jointly achieve lasting and sustainable improvements with regard to efficient production, safe operation and high integrity at our plants.”

Statoil’s senior vice president for procurements in Statoil, Jon Arnt Jacobsen, said: “The procurement we have made is part of the effort of creating a more competitive industry. The importance of making continuous improvements and changing our working methods has run as a thread through the whole process. In the time ahead we will work closely with the suppliers to ensure that this work is pursued when the agreements enter into force.”