Statoil ASA STO has entered into maintenance and modification agreements for installations on the Norwegian continental shelf (NCS) and for the onshore plants at Sture, Kollsnes, Kårstø and Melkøya. The agreements are valued at NOK 24 billion.
Competition agreements for more complicated modification services have also been awarded. Maintenance and modifications are vital for the safe and proficient operation of Statoil’s offshore and onshore installations. Hence, in order to encourage constant enhancement and to increase yield new compensation formats have been prepared.
Consequently, Statoil decided to divide the entire portfolio in main contractor agreements and competition agreements.
The main supplier agreements portfolio is estimated to be valued (including options) at NOK 24 billion. The contract will become effective in the first quarter of 2016 and will extend over a six year period. The contact also has provision for a four-year extension. However, the other options in the current maintenance and modifications agreements will not be applicable.
Aibel AS, Apply Sørco AS, Reinertsen AS and Wood Group Mustang Norway AS have received the main contractor agreements.
The competition agreements portfolio will take effect in the first quarter of 2016 and will span across a 10-year period. These agreements will make way for individual project competitions and participation is expected from one, two or even more suppliers.
Aibel AS, Aker Solutions AS, Apply Sørco AS, Reinertsen AS and Wood Group Mustang Norway AS have been awarded the competition agreements.
The company’s focus on continuing important improvements with familiar maintenance and modification suppliers is indicated by these awards. However, the inclusion of a new player reflects the incorporation of a new component in the agreement portfolio.
A complete procurement process was executed, wherein Statoil worked diligently with the bidders to find the best solutions based on appraisals of health, safety and environment (HSE) as well as technical and commercial measures.
Currently, Statoil carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are Energy Transfer Equity, L.P. ETE, ReneSola Ltd. SOL and Boardwalk Pipeline Partners, LP BWP. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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