Statoil suspends Songa’s semi-sub rig

songa deltaOffshore drilling contractor Songa Offshore has informed that its client Statoil will suspend the contract for the semi-submersible rig Songa Delta after the current well, Slemmestad, in the North Sea.

Songa informed on Tuesday that from end of June 2016, the rig will go on 75% suspension rate of $277,000 per day. The rig’s current operating dayrate is $369,000.

The expected resumption of the work with Statoil is indicated to be mid-August 2016, Songa said.

According to the drilling contractor, the overall financial impact is expected to be limited, due to anticipated lower operating expenses in the warm-stacking period.

The Songa Delta is an Ocean Ranger design column stabilized, semi-submersible drilling unit built in 1981 and capable of operating in water depths up to 2,300 feet.

Statoil recently used the rig for the drilling of wildcat well 30/11-13, located in the North Sea offshore Norway, which proved to be a minor gas/condensate discovery. After that well, the rig went on to drill the wildcat well 30/11-14 for which the company gained drilling permit from the Norwegian Petroleum Directorate in May.

Most of Songa Offshore’s fleet is under a contract with Statoil including three Cat D rigs already operating for the oil company, and one other Cat D rig that is en route from Korea to Norway. Songa’s fourth Cat D rig will also begin its contract with Statoil upon arrival.

Songa’s other semi-submersible drilling rig, the 1976-built Songa Trym, experienced a similar situation with Statoil as Songa Delta did. Namely, the rig’s contract with Statoil was suspended in November 2014 and cancelled a year later, in November 2015, four months before the expiration of contract. The rig is currently stacked.

Offshore Energy Today Staff

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