Statoil forces DIACS competition

Statoil has put Schlumberger and WellDynamics head-to-head on downhole instrumentation.

Statoil has awarded two ‘frame’ contracts for downhole instrumentation and control systems (DIACS) on its North Sea Snorre field. The contracts were awarded to Schlumberger and WellDynamics. Each contract, worth about NOK 100 million, includes development, production, testing and installation of the solutions. The contracts will run for three years with possible extensions to other of Statoil’s fields.


Statoil contract manager Bjørn Schibevaag said, “With these frame agreements, we’ve helped to introduce new solutions and create competition over price and technology development in the market.”


WellDynamics has already installed four DIACS on Snorre. The new frame contract means that the company will continue to supply such equipment to the platform. But from now on, this activity will be performed ‘in competition with Schlumberger’. Schlumberger plans to start installing its own DIACS equipment during 2004. WellDynamics is a Halliburton/Shell joint venture formed in 2001 to leverage and combine Shell’s iWell technology with Halliburton’s SmartWell intelligent completion system.

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