By Chester Yung 
 

HONG KONG--China Oilfield Services Ltd. (2883.HK), a unit of state-owned Cnooc Group, said Thursday Norway's Statoil ASA (STL.OS) has canceled the service contract of its drilling rig.

The Hong Kong-listed oilfield service provider said Statoil has agreed to compensate the company due to the cancellation. It didn't state the value of the compensation.

COSL said its unit in the North Sea announced 229 job cuts after the contract cancellation.

Write to Chester Yung at chester.yung@wsj.com

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