Statoil axes Stena Don contract

Statoil is cutting its contract short for Stena Drilling's Stena Don semisubmersible drilling rig, leading to about 180 job cuts.

The Stena Don, from Stena Drilling.

The rig has been on contract with Statoil since 7 February 2014, performing operations for the Troll and Fram licenses, offshore Norway. The original contract was scheduled to end on 7 February 2017.

Statoil said the Stena Don cancellation will take effect in early November, after the plugging activity on the Troll field has been completed

“After this, Stena Don was committed to the Fram license,” Statoil said.

“However, the license does not have any work program for the rig, nor does Statoil have any other activities where the available capacity can be used.”

The early termination notice will result in the loss of 180 jobs, according to the Safe Union in Norway.

“The consolation is that Stena Don has very good ‘report card,’ and we therefore hope that the time in the season is relatively short,” Stig Rune Refvik, a Safe Union representative said.

Statoil started production at the subsea Fram C East satellite using the Stena Don in late-August, boosting the nearby Troll C’s production and activities.

The Fram fields are about 20km north of the Troll field in Block 35/11 in production license 090, in about 350m water depth.

Fram C East is a long production well from the existing Fram subsea template. Production is tied back to Troll C. Gas will be transported to Kollsnes via Troll A, whereas oil will be piped to Mongstad for further processing.

Also today (25 October) Statoil reported a gas leak at Mongstad that was resolved quickly and is under control. The incident, according to the Norwegian giant, was caused by a hydrogen discharge in the petrol plant, which was being shut down and depressurized. No injuries were reported.

Read more:

Statoil starts production from Fram C East

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