Archer Limited: Statoil awards Archer 12 of the 18 drilling platforms tendered on the Norwegian Continental Shelf (NCS), with a firm contract value of services of more than NOK 6 billion
Hamilton, Bermuda (April 3, 2018)
Archer Limited announces that effective from the 3rd April 2018, Statoil ASA have confirmed a four year firm contract to Archer for the provision of "Drilling Services Fixed Platforms" on a total of 12 platforms located on the NCS. The contract award includes three contract extension options of two years each. The contract is effective from October 1st 2018 following a transition period to prepare for operations. The firm contract award has a value of more than NOK 6 billion based on the current drilling schedule and ensures Archer's continued operations for Statoil in the Norwegian continental shelf until at least October 1, 2022. The total contract award is approximately NOK 15 billion should Statoil elect to exercise all options. These values exclude additional work scope such as modifications and upgrades of the platforms in the portfolio.
Archer will with this contract award provide drilling services for Statoil on 13 platforms on the Norwegian Continental Shelf and 2 platforms in Brazil. The additional platforms awarded to Archer were Grane and Gullfaks A, B and C. These four rigs are currently in drilling mode, and Archer will on commencement of the contract increase its employee base by approximately 400 people.
The terms of this new contract require Archer to further integrate, collaborate and assume additional responsibilities on location with both Statoil and their nominated Service Contractors to deliver wells more efficiently. Archer has expectation of all operations being executed with no harm to personnel, no well control incidents and no falling objects.
John Lechner, CEO of Archer comments: "The award of a large majority of Statoil operated platforms in the NCS is a direct result of the hard work, innovation and commitment demonstrated by all of our employees, both onshore and offshore, to deliver a high level of operational safety and technical efficiency while maintaining a safe working environment on Statoil operations. 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."
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This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.