Oslo Stock Exchange-listed oil services company Archer has got its hands on a new long-term platform drilling assignment with Equinor, a Norwegian state-owned energy giant, for platform drilling services off the coast of Brazil.
With an estimated firm contract value of $40 million, Archer’s two-year assignment in Brazil will start in November 2024, in direct continuation of its current deal for drilling operations and maintenance on Equinor’s Peregrino A and B platforms. The contract comes with an optional two-year extension period.
Alexander Olsson , Archer’s EVP Platform Operations, commented: ‘’We are proud that Equinor has chosen to continue their relationship with Archer in Brazil where we have been the partner of choice since the start of drilling operations in 2008. This contract reflects our client’s confidence in our ability to maintain safe and efficient operations across both their platforms.
“It is testament to the hard work and dedication of our teams who have supported both the Peregrino A & B assets for over fifteen years. This contract is an important part of Archer’s strategy to increase and strengthen operations in key regions and gives us visibility to continue our international growth.”
The Peregrino oil field , which started production in 2011 , is located in BM-C-7 and BM-C-47 licenses approximately 85 km offshore Brazil. The field is operated by Equinor with a 60% interest, while its partner, Sinochem, holds the remaining 40% interest.
As part of Peregrino’s Phase II development, Equinor installed a third fixed platform, Peregrino C , which started operating in the field in October 2023 . This followed the start-up of the gas import project with natural gas being delivered through Petrobras’ Rota 2 gas pipeline , which came after the restart of production at the Peregrino field in the Campos Basin.
The latest contract award comes shortly after Archer secured a two-year contract extension with Equinor in the North Sea. Recently, the firm also pooled resources with Horizon56 to bring a new solution to the market, enabling the digitalization of operating procedures (SOPs) to fortify rig safety and efficiency.