Statoil (NYSE:STO), the Norwegian oil and gas company, is dishing out new platform drilling contracts worth as much as 12bln Norwegian kroners or US$1.67bln to three companies: Archer, (OSL:ARCHER) KCA Deutag and Odfjell Drilling (FRA:OD3).
The four-year contracts, which take effect from the start of October, will allow Statoil to improve the efficiency and safety of its drilling operations at its 18 fixed platforms across Norway’s continental shelf and improve its competitiveness in the industry.
Archer was the favoured company of the three groups, which were given contracts by Statoil, winning 12 of the 18 contracts. Some of the fields where the platforms will be installed include Grane, Gullfaks, Njord and Sleipner.
“The contracts provide us with a good foundation for close and predictable collaboration. We thus facilitate safe and efficient operations. The contracts are aimed at improving our joint competitiveness and enabling a sound level of activities,” said Statoil’s chief procurement officer, Pål Eitrheim in a statement.
Norway’s continental shelf is full of petroleum and gas and it provides the foundation for Norway’s petroleum economy.
Shares in Statoil (NYSE:STO) rose 2.3% to close at US$23.80 by the bell in New York Tuesday.