Equinor has awarded PGS and Shearwater GeoServices framework agreements for a range of seismic services in a move that is expected to be copied throughout the industry.
Equinor has awarded PGS and Shearwater GeoServices framework agreements for a range of seismic services in a move that is expected to be copied throughout the industry.
The agreements, which have an estimated value of around $83 million, will cover 4D towed-streamer seismic acquisition on the Norwegian Continental Shelf (NCS) for an initial two years.
‘This is a new way of working with seismic suppliers. We are moving away from annual tenders towards a more long-term collaboration model. This will ensure improved predictability and more sustainable rates for suppliers in the seismic industry that is traditionally exposed to significant cyclicity,’ said Peggy Krantz-Underland, Equinor’s chief procurement officer.
The two-year agreements — which will give the heavily leveraged seismic contractors important visibility of future earnings in what is predicted to be a continuing uncertain market — include additional two two-year options and can also be applied for the UK continental shelf.
‘4D seismic gives us better data to map remaining oil and gas resources as the reservoirs are being produced. These contracts will help us to optimize the reservoir drainage and place new wells, and thereby achieve our ambition of recovering 60% of oil and 85% of gas on the NCS,’ said Charlotte Bøe Tjølsen, vice-president of petroleum technology operations in Equinor.
As part of the agreement, PGS is scheduled to acquire two 4D GeoStreamer monitoring surveys in 2021 over Fram and Tordis/Vigdis fields. The first survey is scheduled to start in June 2021, and the total duration for the two 2021 projects is estimated at around two and a half months.
PGS has also been awarded a specific framework agreement for 4D seismic services at the Gullfaks field in the Norwegian North Sea. The agreement comprises an exclusive right to acquire up to three surveys prior to 2031.
Rune Olav Pedersen, president and CEO of PGS, said: ‘We operate in a cyclical industry with low visibility, and longer-term contracts improve our order book and financial predictability in a challenging seismic market. An important part of our strategy is to maintain leadership in the production 4D segment.
‘The confidence Equinor shows by awarding us these frame agreements confirms our strong position in the 4D market, the reliability of our Ramform vessels and the data quality provided by our GeoStreamer technology.’
Shearwater has been awarded an initial survey over the Heidrun Field in the Norwegian North Sea. It will allocate one of its Isometrix vessels for the one-month survey, which is expected to start in Q2.
‘Shearwater’s established leading 4D technology positions us well to deliver high-quality time-lapse measurements for Equinor. This new framework agreement provides us with increased visibility and the opportunity to optimize utilization and efficiency into the future,’ said Irene Waage Basili, CEO of Shearwater.
Equinor said: ‘PGS and Shearwater are Norwegian seismic suppliers with strong technical solutions, modern and well-equipped vessels and a good track record for Equinor.’
