Equinor extends supply agreements worth $1.3 billion

Oil and gas major Equinor said on Friday it has exercised options for agreements valued at around NOK 11.5 billion (more than $1.3 billion) with Norwegian suppliers for the maintenance and modification services of all onshore and offshore installations.

The agreements were signed in 2016 and applies where Equinor is the operator or technical service provider, the company said. The cooperation with Aibel AS, Apply AS, Aker Solutions AS and Wood Group Norway AS have been extended by three years and will continue creating significant ripple effects across the country, it said in a statement.

“We are pleased about continuing the good cooperation we have had with our suppliers. By exercising the options, we can build on the suppliers’ knowhow of our installations and quickly test new cooperation models to achieve results,” Mette H. Ottøy, Equinor’s chief procurement officer, said in a statement.

The extension of the agreements will encourage a reduction in CO2 emissions and costs through simplification, standardisation, smart solutions and competitive local deliveries, Ottøy said. “The overall goal is that the enhanced cooperation will improve safety and produce results that will benefit both parties,” she said.