Statoil Awards Contracts for Seven Supply Vessels to Be Fitted with Battery-Power

offshore operations
Photo: Statoil

Norwegian oil major Statoil has awarded contracts to five shipowners covering a total seven supply vessels and requiring each to be equipped with hybrid battery power, and the possibility of shore power connection.

The total value of the contracts amounts to NOK 3.1 billion, or about USD $366 million.

The seven supply vessels will operate from the supply bases at Mongstad, Dusavik, Florø and Kristiansund.

Four of the contracts have a duration of five years, plus five one-year extension options. These contracts were awarded to shipowners Skansi Offshore, Solstad Farstad and two contracts to DOF.

Three of the contracts have a duration of three years, plus three one-year extension options. Shipowners who have received the three-year contracts include Ugland and two contracts for Havila.

“We look forward to a long-term cooperation with the chosen ship owners. The contracts will bring predictability to both the ship owners and Statoil, and will allow us to focus on optimising our operations to continuously improve operation, safety and energy efficiency,” says Philippe F. Mathieu, senior vice president for joint operations support in Statoil.

The conversions to battery power is part of Statoil’s ambition to become a leading company in carbon-efficient oil and gas production, and reducing emissions from its logistics activities.

None of the vessels receiving the contracts are currently equipped with systems for battery-powered operations or shore power. Once installed, however, the vessels will have «Battery Power Notation», helping the vessels reduce fuel consumption while working in dynamic positioning alongside the installations.

“Since 2011 we have reduced CO2 emissions from our vessel portfolio on the Norwegian continental shelf (NCS) by close to 30%, and together with the ship owners we want to further reduce our climate footprint. Vessels that can demonstrate low fuel consumption have therefore been successful in this award. Based on our experience battery operation has a good impact on consumption and emissions, and we are pleased that all vessels awarded long-term contracts with us today will be equipped for battery power and shore power,” says Frida Eklöf Monstad, head of Statoil’s marine unit.

Including its current vessels, Statoil has 16 supply vessels on long-term contract with 10 different ship owners. Statoil already has two battery-operated vessels on contract.

Statoil said it will still need the spot market after the contract awards, but the need will vary from day to day.