Norwegian energy giant Equinor has signed a three-year contract to plug wells across its operated fields on the Norwegian Continental Shelf, marking the start of a long-term effort to permanently decommission legacy production wells. The initiative is part of a broader seven-year program aimed at shutting down wells across nine different licenses.
For the first time, Equinor will dedicate a specialized rig exclusively for well-plugging operations. The company has awarded a contract worth approximately $330 million to Island Drilling, which will deploy the Island Innovator semi-submersible rig for the task. The contract includes five optional one-year extensions.
Additionally, Archer Oiltools and Baker Hughes Norge have been selected under framework agreements to provide plugging services. These agreements span three years, with options for two additional two-year extensions.
A spokesperson for Equinor stated, “There will be a significant increase in well-plugging activities in the coming years. By securing long-term contracts and partnerships with key suppliers, we aim to streamline these operations and enhance efficiency.”
Dedicated Rig for Plugging Operations
Previously, various suppliers carried out well-plugging work on a case-by-case basis using multiple rigs. With this new approach, Equinor is setting aside the Island Innovator rig specifically for plugging purposes. Built in 2012, the rig has completed several well-abandonment projects worldwide, including in Equatorial Guinea and Mauritania in 2023 and 2024. It is currently stationed near Bergen, Norway, and is expected to begin operations for Equinor in early 2026.
Under the contract, Island Innovator will permanently plug 15 to 20 wells per year across nine licenses, with assignments at key fields such as Heidrun, Snorre, and Norne.
Planning and Execution of Plugging Services
As part of the agreement, Archer Oiltools has been tasked with planning operations for the first 26 wells scheduled for plugging from Island Innovator, along with options to execute the work.
Equinor’s Senior Vice President for Drilling & Well, Erik Kirkemo, emphasized the company’s dual focus on exploration and decommissioning, stating: “We plan to drill 600 improved oil recovery wells and around 250 exploration wells to sustain production on the Norwegian Continental Shelf through 2035. At the same time, many wells will be securely and permanently plugged. The Island Innovator gives us a specialized tool for this task, with an initial three-year work program, though we may extend its use beyond that.”
Over the next seven years, the total investment in integrated plugging services, excluding the Island Innovator contract, is projected to be around NOK 3.5 billion ($333 million). While the exact distribution of work among suppliers is yet to be determined, Archer Oiltools and Baker Hughes Norge are already positioned under framework agreements to take on key responsibilities.
Equinor’s commitment to structured, long-term well decommissioning reflects its broader strategy for responsible resource management on the Norwegian Continental Shelf.