ABB AS and Siemens Energy AS have secured framework agreements for providing service of electrical equipment on all Equinor’s installations on the Norwegian continental shelf (NCS) and onshore plants in Norway. The total value of the agreements with options is estimated at around NOK 4.5 billion (approximately AU$695 million). The scope is expected to require about 100 man-years in Norway.
The agreements have been 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.
Equinor’s Chief Procurement Officer, Peggy Krantz-Underland, said the contracts will be a key enabler to ensure safe and sustainable operation and maintenance of the company’s offshore and onshore facilities.
“They will also contribute to sustain important jobs in Norway for the supplier companies,” she said.
Under the framework agreements, 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.
“We anticipate an 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 CO2 emission reductions,” shared Gunnar Nakken, senior vice president in Operations Technology in Equinor.
Both framework agreements have a firm period of eight years. The agreement awarded to Siemens Energy also includes three four-year options.
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.