Statoil to suspend Saipem rig contract

Owing to overcapacity in its rig portfolio, Statoil will suspend its contract with Saipem for the rig Scarabeo5 from the autumn of 2014, provisionally for the remainder of the year.

This means that Scarabeo5 will be laid up for a brief period. Statoil is planning to re-commission the rig after the turn of the year.

The rig is currently engaged in operations on Visund and is scheduled to complete its work there in August. The period for which the rig is being taken out of operation is equivalent to less than 3% of Statoil’s drilling capacity on the Norwegian continental shelf (NCS) this year.

“We subject our rig portfolio to continuous assessment, so that we are sure of having the right rig on the right job at all times,” says Tore Aarreberg, head of rig procurement. “We are planning for the rig to be in operation again after the turn of the year. We are pleased with Saipem as a supplier. They help us reach our goals, and we have a good cooperation with the supplier.”

The rig is on contract until 2017 and will be used for the drilling and completion of production wells on various NCS fields, thus boosting recovery from existing fields.

Taking Scarabeo5 out of commission for a brief period will not affect Statoil’s production targets or planned exploration activities on the NCS. In 2014 the company will still be drilling 20-25 exploration wells on the NCS. Out of these 20-25, Statoil will be the operator of approximately two-thirds of the wells.

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