Statoil trims Cat D rig contract durations

Offshore staff

LIMASSOL, Cyprus – Statoil has notified Songa Offshore that it is exercising its contractual rights to reduce contract lengths on two newbuild Cat D semisubmersible drilling rigs.

The Norwegian operator ordered four Cat D rigs for wide-ranging operations in the North Sea. Deliveries have been delayed due to issues at the construction yard in the Far East.

Statoil’s drilling contracts stipulate that it is entitled to shorten their duration by the same amount of time as the rigs have been delayed. As a result, Songa Equinox’s contract will be cut by 347 days and the contract for Songa Endurance by 184 days.

Songa Encourage and Songa Enabler are due to begin their drilling contracts in April and August 2016, each around four months after their respective pre-agreed delivery windows.

Songa Offshore estimates the aggregate contract backlog for the four rigs, adjusted for the received notice, at more than 30.5 rig years or $5.1 billion as of Feb. 29, 2016, excluding options.

03/15/2016

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