On 2026‑05‑04 Equinor announced a $1.8 billion extension of drilling and well‑service contracts with Baker Hughes, Halliburton and Schlumberger, a deal that translates to roughly 17 billion Norwegian krone. The extension includes one‑year options on integrated services agreements and two‑year options on framework agreements for specialist services, creating a multi‑year revenue stream for the Houston‑based oilfield services company.
The contract confirms Baker Hughes’ position as a primary supplier to Equinor, one of the world’s largest offshore operators. In its Q1 2026 results, Baker Hughes reported revenue of $6.6 billion, up 2% year‑over‑year, and adjusted diluted EPS of $0.58, a beat that reflects disciplined cost control and a favorable mix of high‑margin services. Halliburton and Schlumberger also posted Q1 2026 revenues of $5.4 billion (flat YoY) and $8.7 billion (up 3% YoY) respectively, with EPS of $0.55 and $0.52, underscoring the strength of the sector amid Middle East disruptions.
Equinor’s chief procurement officer, Jannicke Nilsson, said the agreements are “among the largest we have, and they are crucial for activity on the Norwegian continental shelf. New wells enable us to maintain high production and deliver stable energy to Europe. This is particularly important at a time of turbulence in the energy markets.” Senior vice president for wells, Rune Nedregaard, added that new wells are expected to account for around 70% of Equinor’s production in 2035, highlighting the strategic importance of the extension for maintaining a 1.2 million barrels‑equivalent‑per‑day production target through 2035.
The deal is projected to support approximately 2,500 jobs and reinforces Equinor’s reliance on established service providers to sustain offshore production. While no specific market reaction data were identified, the contract’s multi‑year nature and the companies’ strong Q1 performance suggest a positive outlook for the oilfield services sector.
The extension not only secures a significant order for Baker Hughes but also signals confidence in the continued demand for drilling and well‑service capabilities in the Norwegian Continental Shelf, a key region for European energy supply.
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