Baker Hughes Wins Drilling Contract for Johan Svendrup

Statoil announced today that it has awarded Baker Hughes Norway a NOK 1.5 billion ($185 million) contract for Johan Svendrup project.

The agreement is for integrated drilling services and is valid for six years with a four-year extension option for the entire field life.

For the Johan Sverdrup field Statoil has decided to invite the market to tender for integrated services in order to reduce total well costs and achieve more efficient well services. Baker Hughes will provide a complete range of services including cementing and pumping, completion, integrated drilling services, and drilling and completion fluids, as well as offshore handling of drill cuttings.

“Drilling will commence in 2016. Together with Baker Hughes we will quickly establish an integrated operations team, working closely with the drilling and rig contractor Odfjell to plan and optimize well deliveries. This award will play an important part in driving performance and creating value for Johan Sverdrup”, says Øivind Reinertsen, senior vice president for the Johan Sverdrup field.

Johan Sverdrup is one of the five biggest oil fields on the Norwegian continental shelf. With expected resources of between 1.7 – 3.0 billion barrels of oil equivalent, it will also be one of the most important industrial projects in Norway over the next 50 years.

Peak production on Johan Sverdrup will be equivalent to 25 percent of all Norwegian petroleum production.

The investment costs for phase one of the Johan Sverdrup development are estimated at some NOK 117 billion (2015 value). The development concept for Johan Sverdrup for the first phase will consist of four installations, including a utility and accommodation platform, a processing platform, a drilling platform and a riser platform, in addition to three subsea templates for water injection.

The platforms will be bridge-linked. The project aims at a recovery rate of 70% for Johan Sverdrup.