Equinor Streamlines Plugging Operations on Norwegian Shelf
Island Innovator, a mobile rig designed specifically for well plugging operations, has been contracted by Equinor for several years, with its start-up scheduled for early 2026. The Norwegian rig company will perform crucial tasks to maintain production and decommission wells in the coming years.
The contract, valued at approximately USD 330 million, includes five one-year extension options. It covers the rig’s mobilisation, planned upgrades, and certain integrated drilling services, highlighting the importance of this rig for Equinor’s operations.
Focused on Long-Term Production and Decommissioning
Equinor’s senior vice president for drilling & well, Erik G. Kirkemo, highlighted the dual purpose of the rig in the company’s ongoing operations. He stated, “We will drill 600 improved oil recovery wells and about 250 exploration wells to sustain our production on the Norwegian Continental Shelf (NCS) through 2035. At the same time, many wells will be permanently plugged.”
Island Innovator is specially designed for well plugging and will be responsible for permanently sealing between 15 to 20 wells annually. These wells will be located in nine different licences, including subsea wells at major oil fields like Heidrun, Snorre, and Norne. By plugging these wells, Equinor ensures that they can no longer be used for oil or gas production, marking the completion of the life cycle for these facilities.
Kirkemo explained that the initial contract is planned for a three-year work programme, but noted that there is potential for the rig to be used for extended operations beyond this period. “The rig provides us with a tool specially designed for plugging operations, and we do not rule out utilising it for longer-term needs,” he added.
Supporting Sustainable and Efficient Operations
Alongside the Island Innovator contract, Equinor has also awarded framework agreements to two key oil service companies: Archer Oiltools and Baker Hughes Norge. These agreements will provide full-range delivery of plugging services for the next three years, with two possible two-year extensions.
The total value of the integrated plugging services over the next seven years is estimated at around NOK 3.5 billion. Archer Oiltools, in particular, has been assigned responsibility for planning the plugging operations for 26 wells that will be sealed from the Island Innovator rig, with options for additional work.
A Collaborative Approach to Industrialisation
Mette H. Ottøy, Equinor’s chief procurement officer, emphasized the collaborative approach taken with suppliers to enhance the efficiency and safety of plugging operations. “Through these contracts, the suppliers are involved at an early stage, giving them greater responsibility for planning the plugging operations. These efforts will be closely monitored by Equinor, who holds the overall responsibility,” Ottøy said.
Equinor is committed to facilitating the industrialisation of safe and efficient plugging operations. By involving suppliers early in the process, the company aims to foster continuous improvements in quality while reducing costs for the work, which will only increase as more wells are decommissioned on the NCS in the coming years.
“By ensuring quality and cost-efficiency in well plugging, we help secure the future of these operations, which will become more important as we continue to focus on sustainability and the responsible management of our oil and gas assets,” Ottøy added.
The Importance of Well Plugging
Well plugging is an essential process in the oil and gas industry, particularly when a well reaches the end of its productive life. Plugging involves sealing the well to ensure that hydrocarbons cannot leak and to prevent environmental hazards. This process is crucial for the safe and effective decommissioning of wells on the NCS, ensuring that they are rendered inactive and pose no risk to the surrounding environment.
Equinor’s long-term strategy for plugging and decommissioning is a key part of its commitment to sustainability. The company’s efforts are focused on reducing the environmental impact of its operations while maintaining safety and operational efficiency.
The Island Innovator’s role in this process marks a significant step forward in Equinor’s strategy to manage its aging assets responsibly. With an experienced rig designed for these tasks, Equinor can ensure that wells are plugged securely and efficiently, contributing to the overall sustainability of its operations.
