April 3, 2018 / 12:43 PM / 5 months ago

Statoil awards $1.5 billion drilling contracts, favors Archer

OSLO (Reuters) - Statoil has awarded 12 billion Norwegian crowns ($1.53 billion) worth of new platform drilling contracts to Archer, KCA Deutag and Odfjell Drilling, the Norwegian oil company said on Friday.

The company logo of Statoil is seen during a company results presentation in London February 6, 2015. REUTERS/Toby Melville/File Photo GLOBAL BUSINESS WEEK AHEAD PACKAGE - SEARCH 'BUSINESS WEEK AHEAD 24 OCT' FOR ALL IMAGES - S1AEUITDEPAA

The new four-year contracts covering 18 fixed platforms on Norway’s continental shelf were part of Statoil’s efforts to increase cooperation between various service providers to further boost drilling efficiency, a spokesman said.

“We are also in the market to sign new contracts with providers of oil services to create integrated drilling services as we have done at Johan Sverdrup and Mariner fields,” the spokesman added.

Out of 18 drilling contracts announced on Tuesday, Norway’s Archer won the most, 12 contracts, sending its shares up 14 by 1230 GMT.

The company estimated firm contract value at more than 6 billion crowns, while it could reach 15 billion crowns if Statoil decides to exercise the options.

While Archer will continue to provide platform drilling services at eight installations, it has also won contracts at Grane and Gulfaks A, B and C platforms, taking over from Odfjell Drilling and KCA Deutag respectively.

(Corrects currency and figure in the fifth paragraph to 15 billion crowns from $15 million)

Reporting by Nerijus Adomaitis, editing by Terje Solsvik

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