Aibel wins M&M work for over third of Statoil’s offshore installations

Business & Finance

Statoil, an oil and gas company, has awarded Aibel, an oil services company, a new maintenance and modification (M&M) contract worth approximately $864.4 million, plus options. 

Through the new agreement, Aibel will have continued responsibility for 12 offshore installations and four facilities, and will also be responsible for Aasta Hansteen.

The new contract has a duration of six years with options for an additional four years. According to Aibel’s calculations, the contract has a value of approx. NOK 7.5 billion ($864.4M) plus options. The contract entails Aibel to carry out maintenance and modification work at more than one third of Statoil’s offshore installations, and at four out of six onshore facilities on the Norwegian Coast.

“This is a vote of confidence for Aibel. With a new installation in our portfolio – in addition to today’s volume – we are really content with the result. Having Aasta Hansteen included in the contract will also strengthen our presence in the northern part of the country,” says Jan Skogseth, President and CEO of Aibel.

The award secures jobs and continued activity at all Aibel offices along the Norwegian Coast, Aibel said.

Through the new contract, Aibel says it will carry out maintenance and modification work at a total of 13 installations in the North Sea, Norwegian Sea and Barents Sea, plus at four onshore facilities. In addition, there is an option for Njord A and B.

Namely, Aibel will work on Norne, Aasta Hansteen, Kristin + option on Njord A and B, Oseberg A, B, D, South and East Veslefrikk A and B, and Statfjord A, B and C.

According to the company, the contract is expected to employ about 1,000 employees at Aibel. It is valid as of March 1, 2016.

Aibel has also been awarded a competition contract which prequalifies it to bid on individual assignments on all Statoil installations on the Norwegian Continental Shelf.