Norwegian oil service provider Archer has been awarded a four-year firm contract by Statoil for the provision of drilling services on a total of 12 platforms located on the Norwegian Continental Shelf.
The contract, which will be effective from October 1, also includes three extension options of two years each. The total value of the firm contract award is over NOK6bn ($762m) and it could be increased to NOK15bn if all the options were exercised.
On commencement of the contract, Archer will increase its employee base by approximately 400 people.
“We look forward to continuing our working relationship with Statoil both in Norway and Brazil and being an integral part of this dynamic industry shift to integrated operations, maintenance and well services in combination with Statoil’s nominated service contractors. The eventual integrated scope will require engineering and rental services, and thus increase our projected revenue and profitability in Norway going forward,” said John Lechner, CEO of Archer.