A frame contract for inspection, maintenance and repairs of subsea installations and pipelines has been awarded by Statoil (NYSE:STO) to Subsea 7 (NASDAQ:SUBC) (LON:OMHK) . The estimated value of the contract is approximately US $342 million (NOK 2 billion), including options.
“With increased focus on lifetime extensions and opportunities for enhanced oil and gas production by using existing infrastructure, there is a growing need for such subsea services,” says Jon Arnt Jacobsen, chief procurement officer in Statoil.
The supplier will perform and deliver subsea inspection, maintenance and repair (IMR) services. This involves the use of equipment, personnel and vessel.
The contract means that Statoil will get additional capacity and renewal of its fleet of vessels within this service segment, so that operations can be performed with a very good standard of health, safety and the environment (HSE) and with additional improvements in effectiveness.
The duration of the agreement is five years, and there are two one year-options. Operational start-up is planned from 1 July 2011 and will apply to the Norwegian, UK, Dutch, German, Belgian and French continental shelves. Such IMR vessels operate primarily for licences with production from subsea facilities. For the NCS that means all subsea fields from Snøhvit in the north to Sleipner in the south.