STAVANGER -- Statoil has issued a Letter of Intent to Songa Offshore to use the Songa Dee rig for production drilling on the Gullfaks field in the Norwegian North Sea. The contract, which runs for three years with a further one-year option, is valued at around $378 million.
“The Gullfaks field has considerable remaining resources,” said Torstein Hole, Senior Vice President for Statoil’s operations west cluster. Securing important drilling capacity on the field for the next three years, this agreement allows us to implement several measures to improve the Gullfaks oil recovery. The drilling operations will increase the field’s production volumes from 2012, which will strongly boost the recovery rate from the field.”
Vidar Birkeland, acting head of procurements in Statoil, added: “The agreement further marks the beginning of a co-operation between Songa and Statoil. We have a strategy to increase the diversity, competition and flexibility of this market. For this reason it is important to Statoil to have several rig companies operating in Norway.”
The rig is due to start its assignment for Statoil next August, after completing its current commitments for Marathon and Lundin Petroleum, at a day rate of $345,000. The agreement is contingent on partner approval.