Statoil secures deepwater rig for drilling program

Statoil has contracted the ultra-deepwater semisubmersible West Hercules from North Atlantic Norway for exploration and production drilling internationally and offshore Norway.

Offshore staff

STAVANGER, Norway – Statoil has contracted the ultra-deepwater semisubmersible West Hercules from North Atlantic Norway for exploration and production drilling internationally and offshore Norway.

Potential revenue of the four-year contract to North Atlantic is $787 million, including $50 million for the mobilization. It should start the program next summer, after completing its current contract in the South China Sea and the mobilization period.

Statoil has the right to extend the contract for an additional one-year period.

West Hercules is a sixth generation, dynamically positioned semi which has been working in the South China Sea for Husky Oil China since delivery from the yard in November 2008.

“With its many capabilities, West Hercules will contribute to maintaining a sustainable activity level of exploration, and also to execute on our company’s ambitious exploration strategy in the years to come,” said Tim Dodson, Statoil’s executive VP for Exploration.

“Inclusion of this rig in our portfolio provides the necessary flexibility we are looking for and it supports our earlier communicated strategy of revitalising the Norwegian continental shelf with high value barrels and deliver on our exploration program globally. Acquiring this rig is an important contribution to securing Statoil’s rig capacity.”

The dayrate for the rig is $490,000.

Statoil says West Hercules has a high load carrying capacity and an efficient drilling floor layout with improved safety and working environment measures. It can run parallel drilling operations with a water depth capacity up to 3,000 m (9,842 ft).

09/12/2011

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