ABB and Siemens Energy have been awarded framework agreements by Equinor for providing the service of electrical equipment on all of its installations on the Norwegian continental shelf (NCS) and onshore plants in Norway.
Equinor said on Wednesday that the total value of the agreements with options is estimated at around NOK 4.5 billion (about $528 million). The scope is expected to require about 100 man-years in Norway.
The agreements are awarded on behalf of Equinor-operated licences on the NCS and onshore plants in Norway, and on behalf of Gassco as the operator for the Kollsnes and Kårstø gas processing plants. The agreements can also be applied globally.
Peggy Krantz-Underland , Equinor’s chief procurement officer (CPO), said: “The contracts will be a key enabler to ensure safe and sustainable operation and maintenance of our offshore and onshore facilities. They will also contribute to sustain important jobs in Norway for the supplier companies”.
Under the framework agreements with Equinor, the suppliers will continue to provide operation, maintenance, modification, and upgrade of the electrical equipment installed onshore and offshore.
The suppliers will also deliver front-end engineering and design (FEED) as well as engineering, procurement, construction, and installation (EPCI) for new electrical projects.
Both framework agreements have a firm period of eight years. The agreement awarded to Siemens Energy also includes three four-year options.
Gunnar Nakken , senior vice president in Operations Technology in Equinor, said: “We anticipate increased use of electrical equipment on the NCS, thereby replacing the need for fuel-driven engines. This will give us increased flexibility to use different power sources, and contribute to CO 2 emission reductions”.
As explained by Equinor, these long-term framework agreements provide predictability for both Equinor and the suppliers.
They form a strong basis for collaboration and continuous improvement, allowing the use of new technologies as well as increased safety and value creation for all parties, the company concluded.