PSW Technology awarded a new 3-year maintenance contract with an estimated contract value of NOK 1.8 billion including options

Equinor has awarded PSW Technology a three-year contract for maintenance services to the Mongstad refinery. The agreement is estimated at 200 MNOK per year and contains options for a further six years. “For PSW, this is a game changer,” says Oddbjørn Haukøy, Chief Executive Officer of Scana and one of the founders of PSW back in 2007.

As the closest neighbour to Equinor’s refinery at Mongstad, PSW Technology has long positioned itself to become a maintenance partner to the refinery.  Wednesday the company succeeded. Equinor awarded the company the contract for maintenance services and prefabrication to the plant for the next three years – with options to extend the agreement for a further two three-year periods.

Oddbjørn Haukøy, CEO, Scana ASA

“We see the contract as a great vote of confidence from Equinor and look forward to good cooperation in the years to come,” says Oddbjørn Haukøy, CEO of Scana.

Doubles the revenue
According to the agreement, PSW will supply electrical services, mechanical maintenance, tank maintenance and welding and sludge services. The agreement has an annual value of approx. NOK 200 million, or a total of approx. NOK 1.8 billion if the options are fulfilled and PSW has the assignment for the next nine years.

“For PSW, this is a game changer. After seven lean years in the drilling industry, PSW Technology has secured an important foundation for the activity in the coming years. The contract doubles the company’s turnover and provides a welcomed long-term perspective,” says Haukøy.

Local maintenance
In the maintenance of the refinery, PSW Technology will receive good help from sister companies PSW Power & Automation at Ågotnes and PSW Solutions at Mongstad. The latter has handled tank maintenance and sludge services at the refinery for the past ten years. PSW is also joined by local subcontractors such as Mongstad Industrier and Østerbø Maskin. Work starts on 1 February with full effect from 1 May, and benefits from PSW’s core services and close proximity to the refinery.

“The maintenance assignment ensures major local ripple effects, such as increased employment, local purchasing and greater elbow room for companies to support activities in the local community. PSW Technology immediately starts recruiting more employees, and as a training company we can also take in more apprentices within all disciplines.  The contract thereby supports versus the UN’s sustainability goals of decent work and economic growth, while the local and short-travelled maintenance ensure a smaller carbon footprint,” says Managing Director of PSW Technology, Tommy Johnsen.  

PSW starts the maintenance assignment at Mongstad May. The company expects to mobilize a team of approx. 150 people for the job, including project staff and administrative positions.

For more information, please contact:

Oddbjørn Haukøy, CEO, Scana ASA, +47 911 71 914

PSW in brief
PSW is a supplier of products, systems and services to energy companies and the maritime industry. The group’s multidisciplinary expertise, state-of-the-art facilities and strategic partnerships enable us to meet industry requirements and customer challenges with safe, dependable, and cost-effective solutions.

Scana in brief
Scana is a listed industrial owner company in the ocean industries creating value through active ownership in market-leading portfolio companies. Our vision is to accelerate decarbonisation of the maritime and offshore sector by being a driving force in electrification and emission reduction solutions. Scana’s portfolio companies have a solid innovation and commercialisation history based on core competence in selected niches. Scana is headquartered in Bergen and has around 350 employees.

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