Norwegian oil company Statoil has extended the suspension times for three offshore drilling rigs. The company said that the reason for the extended suspension for COSL Pioneer, Scarabeo 5 and Songa Trym semi-submersibles was overcapacity in the rig portfolio.
Statoil has also said that the suspensions are also 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 Statoil procurement head Jon Arnt Jacobsen.
Related: Statoil cancels another rig contract
COSL Pioneer, Scarabeo 5 and Songa Trym were initially suspended until the end of the year from October 8, October 5 and November 5, respectively.
COSL Pioneer will be suspended for an additional seven and a half months. The suspension periods for Scarabeo 5 and Songa Trym will be extended by one and a half months and one month, respectively. The extension period for Songa Trym may be reduced, or avoided, if acceleration of activities is achieved, Statoil said,
“I would like to emphasize that the suspensions are not related to the rig deliveries. We are very pleased with the work they have done for us. These measures are necessary due to the overcapacity of rigs compared to the assignments we are prioritising. This situation is unfortunate, and we are doing what we can to minimize the extent of the suspensions,” Jacobsen says.