In a second giant contract award, BP in Norway has awarded StimWell Services a Letter of Award for well-stimulation work worth two billion kroner ($400 million) over four years.
The contract is for a new “purpose built” well-stimulation vessel to be Norwegian-owned and manned, the BP Norge Web site said. It is expected the new ship will steam out of its slip by year-end 2009, ready for work in mid-2010.
“It is our increasing activity at Valhall and the under supply in the North Sea market that triggered us to meet our future demand and restore a healthy competition in the market,” BP Norge managing director Trevor Garlick said in a statement, adding the deal saved on rates and other costs.
Rig costs have already been saved in the North Sea by moving some well-intervention activity to offshore service ships of slighter day rates. The well-stimulation ship marks yet another savings away from rig day rates.
Two models of light-well intervention vessels built in Norway cost nearly a billion kroner ($200 million) each.
Tags:
BP Norge AS,
StimWell Services Ltd.
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