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 option periods are included.

DeepWell’s existing contract with Statoil dates back to 2009. The new contract secures activity and visibility for DeepWell and its employees for the next decade.  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) as well as 11 floaters (semi-submersible drilling rigs), and establishes DeepWell as the largest player in this market.

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

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 supporting 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 award is a great motivation after challenging years for the industry, and we intend to make use of this strong foundation to the benefit of existing and new customers”, concludes Bakkevig.