StatoilHydro terminates rig procurement process

Due to high rig rates, StatoilHydro is terminating its procurement process for rig hire for operations on the Norwegian continental shelf.

Dec 22nd, 2008

Offshore staff

STAVANGER, Norway -- Due to high rig rates, StatoilHydro is terminating its procurement process for rig hire for operations on the Norwegian continental shelf.

The invitation to submit tenders for rig hire was distributed during the summer of 2008, and covered both semisubmersible mobile rigs and jackup drilling rigs with contract start at the end of 2012.

When the deadline for submitting tenders expired on Aug. 25 StatoilHydro had received tenders for a total of 28 rigs from 15 suppliers.

StatoilHydro has decided to ask for updated tenders from the suppliers to be submitted by Dec. 1. The updated tenders included reduced rig rates, "but there is still a considerable gap between the tenders and the expectations we have concerning the rates," says Anders Opedal, StatoilHydro head of procurements. "We have therefore decided to terminate the procurement process."

12/22/2008

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