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Apply Sørco secures major contract with Statoil

Apply Sørco has secured new frame agreements for Maintenance, Replacements and Modifications (M&M) from Statoil worth approximately NOK 4 billion over the next six years. The contracts secure activity and visibility for the company and its employees. The contracts include a main supplier agreement, replacing the current M&M agreement, and a competition agreement related to modification projects Statoil chooses to offer for competitive bidding outside the main M&M contract.

The main supplier agreement lasts for six years, with a four-year option for extension. It covers the following licences and installations:

•  Gina Krog, Sleipner, Gudrun, Draupner, Gullfaks, Kvitebjørn and Valemon

The competition agreement has a duration of ten years and covers all of Statoil’s installations onshore and offshore Norway.

“The awards are a declaration of trust from Statoil to Apply Sørco and come as a consequence of the deliveries we have made under the current agreement,” says chief executive officer Per Hatlem in Apply Sørco.

Apply Sørco supports Statoil’s continued focus on cost efficiencies and optimization by including productivity incentives in the contract. Apply Sørco has improved efficiency in partnership with Statoil since the award of the current agreement in 2010. The company remains committed to improving productivity and execution, and will therefore continue the ongoing efficiency program in order to strengthen future competitiveness.

The new contracts and extension of the cooperation with Statoil represent a positive shift for Apply Sørco.  “The recent years have been challenging and it is a great motivation for the whole organisation to be trusted with today’s contract awards. Over time, one may see potential openings for hiring of new employees, both onshore and offshore, to meet requirements in the project portfolio”, says Per Hatlem.

Apply Sørco represents Apply’s MMO and EPCI operations in the oil and gas industry. Deliveries target all project phases from concept development and studies to completion and commissioning, as well as operations, maintenance and modifications of oil and gas production facilities. The company has more than 30 years of experience on the Norwegian Shelf and is headquartered in Stavanger, with offices in Bergen, Krakow, and Hammerfest.