Statoil Cancels Another Deepwater Rig Contract

It’s going to cost them upwards of USD $350 million, however Norwegian energy major Statoil has decided to cancel the Stena Carron rig contract after fulfilling commitments in the Statoil-operated blocks 38 and 39 in the Kwanza basin offshore Angola.

The rig contract will cease with effect from 21 November 2014. It’s previous contract with Statoil carried her into Q1 2017, according to Stena Drilling.

Statoil says their first well results from the area have been disappointing and although the company still sees remaining prospectivity in the basin and on the Statoil acreage, “more time is needed to evaluate the well results and mature new prospects before deciding on future activities.”

Statoil is participating in eight commitment wells across five blocks in the Kwanza basin. So far four wells have been completed and one well is ongoing in block 40 operated by Total.

Two other Statoil contracted rigs will cease operation this month, the Transocean Spitsbergen and the Songa Trym, highlighting what appears to be a general shift of MO by Statoil as oil prices remain in the $70-$80 range.