Offshore staff
HOUSTON -- Statoil told the Offshore Technology Conference today that it expects to award a contract for construction of a new category of drilling rig during 3Q 2011. Statoil also said it has reserved construction slots at four different yards it says are capable of delivering the rig in the second half of 2014.
The semisubmersible rig design, called Cat D, targets drilling only in mid-depth waters and meets the realities of operations on the Norwegian continental shelf. Capable of drilling to 8,500 m (27,887 ft) in 1,300 m (4,265 ft) of water, the Cat D rig will target mature fields offshore Norway with an eye toward operating at a 20% greater efficiency than rigs currently used in the area. The rig also will be standardized to fit into Statoil's fasttrack delivery system.
Jon Arnt Jacobsen, Statoil's procurement officer, said the new design was necessary to fit the Norwegian continental shelf niche. In addition, he pointed out that about 65% of the rigs on the Norwegian shelf were at least 25 years old, and that bringing them up to the standards needed for the work is becoming increasingly expensive.
"To maintain our current production into 2020 will require finding and developing new reserves and maximizing existing production," Jacobsen said. "This requires a cost efficiency improvement compared to current rigs."
He added that Statoil is willing to work with suppliers to reach this goal and as an example, has requested either an eight year firm contract term for the rig with options extending the term to as much as 12 more years, or a 20-year firm commitment from the start. This secures the rig over a term that meets Statoil's growth ambitions, and also secures the drilling contractor of work.
Øystein Arvid Håland, VP of Drilling for Statoil, said, "This is something the market is not giving us. Before Cat D, it was necessary to take a Category C (typical multi-purpose deepwater rig) and rebuild it for drilling and completions.
"By taking the lead in design, we are using proven technologies in smarter ways, not necessarily developing new technology. We want to be able to drill and conduct completion operations more efficiently."
05/03/2011
