On 1 October 2018, Archer transitioned four existing new operations to the “Drilling Services Rigs” contract with Equinor, previously awarded on 3 April 2018
Archer now provides integrated drilling, engineering, leases and well services on 13 of Equinor's 20 drilling rigs and production quarters (PDQ) on the Norwegian continental shelf, the company said on Wednesday.
Joachim Bengtsson, Archer Operations Manager at Equinor, said: “Following the contract award in April, our onshore and offshore teams worked tirelessly to ensure a safe and effective start-up and transition on all platforms. We have cross-trained Archer and Service Delivery teams, as well as growing our workforce by more than 400 employees.”
According to the company, the new scope of contract, along with the four additional platforms (Grane, Gullfaks A, B, C), has significantly increased the Archer employee family to more than 1.000 employees dedicated to delivering operational excellence and ensuring the maximum value by reducing the total well cost for Equinor.
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Archer noted that it will continue to grow its organization in the coming months as it integrates and provides additional services. The contract guarantees Archer's continued operations for Equinor on the Norwegian continental shelf until at least October 1, 2022, with a value of over NOK 6 billion based on the current drilling schedule. There are other contractual options that can guarantee operations until 2028.
Bengtsson added: “This contract represents a new chapter in the delivery of rig drilling services for Equinor, whereby the drilling contractor, contractors and Equinor will collaborate as a single team and deploy resources and skills to optimize deliveries. Our main goals are increased efficiency, reduced POB and cost per well, reduced carbon footprint and reduced risk exposure for personnel without any harm to people as our first priority.
“We will achieve this through close collaboration, continuous improvement through effective recording and sharing of lessons learned, and a win-win performance culture. We firmly believe that this is and will be the future operating model in Norway. ”
Also on Wednesday, Archer secured a contract extension with a major operator for another two years.