Aker BP and Framo sign first long-term smart contract for offshore maintenance

In an important step in the modernisation of the Norwegian shelf operations, Aker BP and Framo have entered a long-term maintenance contract for seawater lift pumps where compensation is directly linked to facility uptime, effective from 5 March.
Aker BP and Framo sign first long-term smart contract for offshore maintenance

Contract signing - Trond Petter Abrahamsen, Director in Framo Services (Left) and Kjetel Digre, Head of Operations and Field Development in Aker BP (Right). (Image source: Lars Petter Larsen/Framo)

In 2018, the two companies with technology company Cognite, embarked upon a digital pilot project for predictive maintenance of the seawater lift pumps on the Aker BP-operated Ivar Aasen field. The pilot has been a resounding success. The newly signed maintenance contract covers all the five field centres where Aker BP is operator.

“A considerable effort has been made on the part of Aker BP and Framo to establish a full-fledged smart contract,” says Aker BP head of operations and field development Kjetel Digre. “The contract represents a huge step within digitalisation and predictive maintenance. Going forward, algorithms and sensor data will help us to increase uptime and reduce maintenance on our seawater lift pumps.”

The contract has a duration of six years, with an option for an additional six years and is a continuation of the pilot contract signed by Aker BP, pump supplier Framo and Cognite during ONS in 2018.

This marks a milestone as Aker BP and pump supplier Framo are now taking the digital pilot work a step further to a long-term collaboration through Aker BP’s smart contracts are performance-based model agreements, where compensation is determined by the systems’ reliability and performance.

“Cooperation with Cognite and sharing data have been essential in arriving at algorithms, digital dashboards and an incentive model that ensures value for both Aker BP and Framo. This way of working is in line with Aker BP’s strategy of creating added value together with strategic partners,” adds Digre.

Since the first smart contract was signed a year and a half ago, large volumes of data have been sent back to the mainland. This became the start of an entirely new collaboration with Aker BP, Framo and Cognite working together as a joint project team.

Digital dashboards have now been developed based on sensor data from Cognite Data Fusion (CDF) and algorithms from Framo. A dedicated incentive model has been negotiated around these elements.

“Basing contract models on real-time data has been uncharted territory,” says Framo Services managing director Trond Petter Abrahamsen. “With the release of these data flows, Framo has been able to predict the condition of equipment, foresee what will happen with the pumps in the future, and in turn plan effective maintenance. Together with Aker BP, we have altered the traditional approach to maintenance. We are now continuing this cooperation into the future and over to other fields.”

Source: Framo AS

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