Statoil extends West Venture semisub contract by five years for $712MM

Source: Statoil

Statoil has offered Seadrill a new five-year contract for the use of the West Venture rig on the Norwegian continental shelf (NCS). The contract is worth about US $712 million. 

“This contract will be important in ensuring that we are able to reach our production targets,” says Geir Slora, Statoil’s senior vice president for drilling and wells.

Plans call for the contract to take effect from August 1, 2010, one year before the present contract for Statoil’s use of the West Venture expires. 

Under the terms of the new contract, the fifth-generation semisub will be used by Statoil until August 2015. Statoil has the option up until January 2011 to extend the contract by a further one or two years at the same rig price. 

Rig capacity needed 

Statoil aims to maintain its present production level on the NCS for the next 10 years.
Enhanced recovery from existing fields, quick and efficient development of new fields and an active exploration program are the key measures for achieving this goal. 

To effectuate these measures, it is crucial that rig capacity is available. 

The new contract means that Statoil will not exercise the one-year extension option in the existing contract.
“We are well pleased with the terms of the agreement and we see that the prices in the rig market are now at a more normal level,” says Anders Opedal, Statoil’s senior vice president for procurement. 

West Venture is a semi-submersible fifth-generation rig. It has been in operation for Statoil on the Troll field in the North Sea since it was built in 2000.

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