Equinor Awards Well Plugging Contracts to Island Drilling, Archer, and Baker Hughes Norge

Norwegian state-owned energy giant Equinor has recently announced the awarding of well plugging contracts to three companies on the Norwegian continental shelf (NCS). Island Drilling, Archer, and Baker Hughes Norge have secured contracts for providing plugging services on Equinor-operated fields.

Island Drilling Contract

Equinor has awarded a three-year contract worth approximately $30 million to Island Drilling for well plugging services. The contract includes mobilization, planned upgrading, and integrated drilling services for permanently plugging 15 to 20 wells annually across nine licenses on the NCS. The work will be carried out using the Island Innovator semi-submersible rig, with operations set to commence in early 2026.

Erik G. Kirkemo, Equinor’s Senior Vice President for Drilling & Well, stated, “We will drill 600 improved oil recovery wells and about 250 exploration wells to maintain our production on the NCS towards 2035. At the same time, many wells will be permanently securely plugged. This rig provides us with a tool specially designed for plugging operations. The initial plan is a three-year work programme, but we do not rule out utilising the rig for operations also in the longer term.”

Archer and Baker Hughes Norge Framework Agreements

In addition to the contract with Island Drilling, Equinor has also awarded framework agreements to Archer and Baker Hughes Norge for full-range delivery of plugging services. The agreements have a duration of three years, with two two-year options, and are estimated to cost about NOK 3.5 billion over the next seven years.

Archer has been tasked with planning plugging operations for 26 wells to be plugged from the Island Innovator rig, including Snorre UPA and Heidrun B&C templates. Mette H. Ottøy, Equinor’s Chief Procurement Officer, highlighted the importance of early supplier involvement in planning plugging operations to ensure safety, efficiency, and cost-effectiveness.

TechnipFMC Contract for Johan Sverdrup Phase 3

Earlier this week, Equinor also awarded an integrated engineering, procurement, construction, and installation (iEPCI) contract to TechnipFMC for the third phase of the Johan Sverdrup development, the third largest oil field on the NCS. This contract further solidifies Equinor’s commitment to enhancing production and efficiency in its operations.