Statoil signs Songa Dee for Gullfaks drilling campaign in Norwegian North Sea

Source: Statoil

Statoil (NYSE:STO) has signed a Letter of Intent with Songa Offshore for hire of the Songa Dee semisub to drill on the North Sea Gullfaks field. The contract value is around US $378 million. 

The rig will carry out production drilling on the Statoil-operated Gullfaks field in the North Sea. It will be used for drilling and completing wells, and will quickly contribute to the field production.

“The Gullfaks field has considerable remaining resources,” says Torstein Hole, senior vice president for Statoil’s operations west cluster.

“Securing important drilling capacity on the field for the next three years, this agreement allows us to implement several measures to improve the Gullfaks oil recovery. The drilling operations will increase the field’s production volumes from 2012, which will strongly boost the recovery rate from the field.”

Vidar Birkeland, acting head of procurements in Statoil, is pleased about the company securing necessary future capacity in the rig market.
“We find that the agreement reflects a sustainable price level for this type of rig,” says Birkeland.

“The agreement further marks the beginning of a co-operation between Songa and Statoil. We have a strategy to increase the diversity, competition and flexibility of this market. For this reason it is important to Statoil to have several rig companies operating in Norway.”

Plans call for the rig to start its production assignment for Statoil in August 2011. The contract states a daily rate of USD 345,000. Statoil has an option to extend the contract period from three to four years on the same terms. The agreement is contingent on partner approval.

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