Norwegian energy giant
Statoil ASA
(
STO
) has awarded contracts worth NOK 940 million ($163.8 million) to
Welltec and Aker Well Service. Both the companies will provide
wireline tractor services for well maintenance in over 40
installations on the Norwegian Continental Shelf (NCS).
The work scope of the four-year contract - beginning from February
1, 2013 through January 31, 2017 - comprises wireline tractor
services for transport of well intervention equipment, such as
logging tools and plugs, in horizontal wells.
This technology will help Statoil to boost yields from mature
fields as well as facilitate remedial work to optimize output from
wells. Maintenance and repair of wells forms a critical function
for increasing recovery. In this context, wireline tractor services
signify an essential and valuable tool for maintenance of wells.
Welltec's contract forms 40% of the work scope and is valued at NOK
540 million. It consists of the installations operated from
Gullfaks, Huldra, Kvitebjørn, Visund, Veslefrikk, Valemon, Oseberg,
Brage, Troll, Grane, Heimdal, Gullfaks SAT, Oseberg SAT, Vega,
Tune, Fram, Vestflanken (Troll), Vale, Vilje, and Bygve/Skirne.
Aker Well Service's contract forms 30% of the work scope and is
valued at NOK 400 million. It will cover facilities including
Stavanger, Stjørdal and Harstad: Statfjord, Volve, Sleipner,
Snorre, Gudrun, Dagny (including Ermintrude) Morvin, Åsgard,
Trestakk, Kristin, Heidrun/ SAT, Norne / SAT, Njord, Tyrihans,
Mikkel, Yttergryta, Alve, Urd, Aasta Hansteen, Snøhvit, and Hyme.
The remaining 30% of the work scope is optional and will involve
employment of rigs for drilling, completion and intervention that
will be awarded to pre-qualified suppliers on a job-by-job basis.
The contracts received by the contractor pair are an extension of
the existing deals, which are due to expire in January 2013. The
new contracts will be executed in direct continuation of the
existing contracts and will include two options of two years each.
Statoil, which recently contracted
Schlumberger Limited
(
SLB
) for electric wireline logging services on the NCS, holds a Zacks
#2 Rank (short-term Buy rating). Longer term, we maintain our
Neutral recommendation on the stock.
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