Norwegian giant Statoil announced it is extending the suspension periods for three of its semisubmersible rigs due to overcapacity.
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The COSL Pioneer. From Ole Jørgen Bratland, Statoil. |
The COSL Pioneer, Scarabeo 5 and Songa Trym were initially suspended until the end of the year from 8 October, 5 October, and 20 November, respectively.
Statoil says that the COSL Pioneer will be suspended for an additional seven and a half months, but it may be reduced, or avoided, if acceleration of activities is achieved.
Suspension periods for Scarabeo 5 will be extended by one and a half months and for the Songa Trym, it will be extended by one month.
According to Statoil, the suspensions are a result of the failed attempts to mature alternative tasks for the rigs.
“When the rig contracts were signed it was challenging to ensure sufficient rig capacity. Today the activity is facing lower margins, a generally high cost level and subsequent lower profitability. It is therefore more demanding to mature profitable drilling targets,” says Jon Arnt Jacobsen, Statoil procurement head. “I would like to emphasize that the suspensions are not related to the rig deliveries. These measures are necessary due to the overcapacity of rigs compared to the assignments we are prioritizing. This situation is unfortunate, and we are doing what we can to minimize the extent of the suspensions.”
In November, Statoil announced it had suspended semisubmersible rigs Transocean Spitsbergen and Songa Trym due to overcapacity. The Transocean Spitsbergen is planning a yard stay from 1 January 2015. The rig is under contract to Statoil to the start of 3Q 2015.
Earlier this week, Statoil said it is investing nearly US$2.9 billion in its Hammerfest LNG plant in Melkoya, Norway to increase its production capacity.
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