Statoil Signs $1.6 Billion in Drilling Contracts for Work on the Norwegian Continental Shelf

Three contracts worth a total of NOK 9.17 billion (USD $1.6 billion) were signed today by Statoil and its partners for use of the semisubmersible drilling rigs the Bideford Dolphin, Stena Don and Scarabeo 5 on the Norwegian continental shelf.

The rigs will be used for production drilling for several fast-track developments as well as drilling and completion on the Norwegian shelf.

“Securing three rigs in the current market represents a real achievement for the Norwegian shelf. The rig capacity we have secured in these contracts will contribute to achieving our production targets towards 2020, through production drilling on several of our legacy assets and starting production from fast-track developments,” says Øystein Michelsen, executive vice president Development and Production Norway in Statoil.

The Bideford Dolphin rig, owned by Dolphin Drilling AS, is currently on contract with Statoil and this new contract represents a 3-year extension (plus an option for two additional years) worth upwards of USD $520 million.  This rig will be used for production drilling on the Tordis and Vigdis fields, as well as the Statfjord field in the North Sea.  The contract will run from the first quarter of 2014 until the first quarter of 2017.

The Stena Don rig, owned by Stena Drilling, will be used for production drilling on the Troll field, as well as the fast-track development Fram H-Nord, in the North Sea. The contract will run from the fourth quarter of 2013 until the fourth quarter of 2016.

The Scarabeo 5 rig, owned by Saipem, received a 3-year contract extension, plus one-year option worth NOK 3.10 billion.  This rig is a fourth-generation semi-submersible capable of operating in water depths of up to 2,000 meters and drilling to depths of up to 9,000 meters and has been working continuously since 1990 in the Norwegian sector of the North Sea.

This will be used for drilling and completion of production wells on various NCS fields. The contract will run from the third quarter of 2014 until the third quarter of 2017.

“Increasing recovery from existing fields is important for Statoil. Drilling and well maintenance provide the greatest contribution to improved recovery, and it is therefore very positive that we have secured this rig capacity,” says Øystein Arvid HÃ¥land, head of drilling and well in Statoil.