COSL Drilling Europe AS has won two contracts from Equinor ASA and will employ COSLPromoter and COSLInnovator for exploration and production drilling at Equinor’s projects on the Norwegian continental shelf, the two companies said in separate press releases.
The total value of the two contracts is $369 million, Equinor said. The COSLPromoter is currently under contract with the company and will start the new contract in the first quarter of 2025, with a term of one year and options for a further four years. The COSLInnovator contract is for two years, starting in the second quarter of 2025, with options for a further three years, Equinor said. Both platforms have been updated with energy efficiency measures and work processes to reduce emissions from operations, according to Equinor.
Equinor said the contract value includes the operation of the casing, a remote vehicle, offshore waste management and maintenance of the cement units, along with mobilization and demobilization fees.
“We plan to drill many production and exploration wells in the coming years. We are delighted to secure the platform capacity that will enable us to meet our high ambitions. We signed a master framework agreement with COSL a few years ago, and these contracts they underline our commitment to continue working together creating value on the Norwegian Continental Shelf,” said Mette Ottoy, Equinor’s Purchasing Director.
“We have worked with COSL for many years and know these platforms well. The platforms have been upgraded with structural reinforcements and updated operating procedures to improve safety during operations in adverse weather conditions. COSL has demonstrated a good safety culture and performance in over the years working with us, and we look forward to safe and efficient operations in the years to come. We have seen a significant reduction in COSL’s fuel consumption and emissions over the past few years and are pleased that its development is aligned with our strategy.” , said Erik Kirkemo, Equinor’s senior vice president of drilling and wells.
“These new contracts are a recognition of our 6. low emission generation platforms as safe and efficient, very suitable for the operations of the future. We have worked hard to achieve this by investing heavily in performance and energy competence to deliver what we aim to be the most efficient and best overall performing platforms in the North Sea. These new long-term contracts will allow us to further develop our company in a very interesting market going forward”, said COSL CEO Frank Tollefsen.
In a separate press release, COSL announced that it has secured a two-year contract in the Barents Sea from Var Energi ASA.
COSL will use its sixth-generation semi-submersible drilling unit, the COSLProspector, for the contract. The contract is for two years, starting in the third quarter of 2024, with three years of options included up to a maximum of five years, the company said in the statement. The value of the contract was not disclosed.
“Var Energi shares our ambition to achieve the energy transition. We are very pleased with the opportunity to provide our safe, efficient and low-emission platforms, and with COSLProspector as our fourth platform, we are well positioned as a strong player on the Norwegian continental shelf. We will use this position to set a new market standard in terms of efficient drilling operations,” said Tollefsen. “We are looking forward to expanding our partnership through a long-term strategic alliance. This provides a solid foundation for developing the drilling operations of the future.”
Meanwhile, COSL announced the need to hire up to 350 new employees as a result of the new rig contracts it recently won, with 320 for offshore work and 30 for onshore work, the company said in a statement of press
“The team at COSL Drilling Europe is our most important asset and our enthusiastic and positive company culture is being recognized by our customers and partners. The new and strong agreements will bring the need to expand the team with more motivated and dedicated employees”, said Tollefsen.
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