Archer has been awarded a four-year contract extension for platform drilling services for Equinor in Norway with an estimated contract value of NOK 8 billion.

“This is a large and important contract win for Archer. It provides us with excellent activity level and visibility over the next four years,” says Dag Skindlo, CEO of Archer.  

Under the contract, Archer will provide platform drilling services to nine out of Equinor’s 19 installations on the Norwegian continental shelf. Archer will service Gullfaks A, B and C, Sleipner A, Snorre A and B, and Statfjord A, B and C. 

“Archer remains the largest platform drilling services provider for Equinor with close to 50 percent of the platforms offshore Norway. This contract underlines our ability to deliver safe and efficient platform drilling operations,” adds Skindlo.

At year-end 2023, Archer’s order backlog stood at USD 1.7 million, equivalent to approximately NOK 18 billion. The contract extension with Equinor, worth an estimated NOK 8 billion, increases Archer’s order backlog with approximately 40 percent. 

The extension will commence on October 1, 2024 in direct continuation of the current contract. From now until October 1, 2024, Archer will operate under the current Equinor contract, servicing 12 rigs on the Norwegian continental shelf. 

As previously communicated, Archer estimates 15-20% EBITDA growth in 2024 as well as further reduction of leverage ratio to between 2.4 and 2.7 at year-end 2024.

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