Norwegian energy giant Equinor has signed drilling and well services contract extensions worth $1.8 billion as it moves to maintain strong oil and gas production offshore Norway and ensure steady energy supplies to Europe.
The agreement involves the extension of major supplier contracts through one-year options under three integrated drilling and well services agreements, alongside two-year extensions under 18 corporate framework agreements covering specialist support services.
The contracts have been awarded to the local subsidiaries of leading oilfield service providers Baker Hughes, Halliburton, and SLB, with an additional 15 suppliers also participating in specialist service delivery.
Senior Vice President for Wells at Equinor, Rune Nedregaard, said new wells are expected to account for about 70 percent of the company’s production by 2035.
He noted that achieving this target will require increased drilling activity and more efficient well interventions delivered at a faster pace and lower cost.
The company plans to drill between 20 and 30 exploration wells annually, reinforcing its long-term strategy to maximise production from the Norwegian Continental Shelf.
Equinor recently secured 35 new production licences in mature exploration areas, with approximately 80 percent of planned exploration expected to take place near existing infrastructure, while the remaining 20 percent will focus on frontier opportunities and less-explored zones.
Senior Vice President for Subsurface on the Norwegian Continental Shelf, Jez Averty, said continued discoveries will be essential to offset projected production declines in the coming years.
He emphasised that integrating new oil and gas discoveries into existing infrastructure remains central to sustaining output.
The development comes as industry analysts project that Norway will require increased exploration activity and fresh investment in oil and gas projects to counter an expected decline in production from the late 2020s.