Statoil cancels West Hercules rig contract with Seadrill

Statoil ASA has cancelled a contract with Seadrill Ltd. for the West Hercules semisubmersible drilling rig. The contract was to expire in 8 months on Jan. 31, 2017. Seadrill said it will receive a lump-sum payment of about $61 million plus reimbursement for costs associated with rig demobilization.

The rig has been on contract with Statoil since Jan. 31, 2013. For the past 18 months, it has been involved in an exploration campaign offshore Newfoundland and Labrador.

Statoil said the original plan was for the rig to move to the Norwegian Sea for a drilling campaign that was to start around July 1 in the Aasta Hansteen license (OGJ Online, Jan. 8, 2013).

But in fall 2015, it was decided to postpone Aasta Hansteen production startup for 1 year until the last half of 2018. The field drilling program also was postponed in part because Statoil said “it is not preferable to complete the wells too early before production startup.”

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...