Wedoany.com Report-Apr. 5, Norwegian energy major Equinor ASA has contracted Island Drilling Company AS to plug wells on Equinor-operated fields on the Norwegian continental shelf (NCS). Equinor said in a media release the rig company will deploy the Island Innovator to serve the three-year contract.

Equinor contracted Island Drilling, Archer Oiltools and Baker Hughes for well plugging services for wells offshore Norway.

Equinor added that oil service companies Archer Oiltools and Baker Hughes Norge have won framework agreements for plugging services.

Island Innovator is a mobile rig designed for well plugging, set to start operation for Equinor in early 2026. The contract, valued at approximately $330 million, includes five one-year options and covers mobilization, planned upgrades, and integrated drilling services, Equinor said.

“We will drill 600 improved oil recovery wells and about 250 exploration wells to maintain our production on the NCS towards 2035. At the same time, many wells will be permanently securely plugged. This rig provides us with a tool specially designed for plugging operations. The initial plan is a three-year work program, but we do not rule out utilizing the rig for operations also in the longer term,” Erik G. Kirkemo, Equinor’s senior vice president for drilling and well, said.

Island Innovator will permanently plug 15 to 20 wells annually across nine licenses, sealing subsea wells at Heidrun, Snorre, and Norne, among others, Equinor said.

Meanwhile Equinor contracted Archer Oiltools and Baker Hughes Norge for full-range delivery of plugging services for three years, with two two-year options. The total value of the integrated plugging services over the next seven years is estimated at NOK 3.5 billion ($333.6 million). Archer Oiltools is responsible for planning the plugging of 26 wells for Island Innovator, with options to perform the work.

“Through these contracts, the suppliers are involved at an early stage and get a greater responsibility for planning the plugging operations, closely monitored by Equinor, who has the overall responsibility. We facilitate the industrialization of safe and efficient plugging operations, ensuring continuous improvements together. This is about ensuring quality and reducing costs for work that will gradually increase on the NCS in the future,” Mette H. Ottøy, Equinor’s chief procurement officer, said.