Statoil Cancels Seadrill Rig Contract
May 23 2016 - 4:01AM
Dow Jones News
By Dominic Chopping
Norway's Statoil ASA (STO) said Monday it has decided to cancel
a contract with Seadrill Ltd. (SDRL) for the West Hercules drilling
rig, after postponing work on the Aasta Hansteen field in the
Norwegian Sea.
The Aasta Hansteen licence was originally due to take over the
rig in the second quarter of 2016 for a drilling campaign starting
around July 1, 2016, but having previously decided to postpone the
Aasta Hansteen field start-up by one year until the second half of
2018, the field-drilling programme will now also be postponed,
Statoil said.
"One of the reasons is that it is not preferable to complete the
wells too early before production start-up," Statoil said.
Seadrill said it will receive a lump-sum payment of around $61
million, plus dayrate and reimbursement of costs associated with
demobilization of the rig. It is now marketing the West Hercules
for new work.
On contract with Statoil since 31 January 2013, the rig has
carried out an exploration campaign offshore Newfoundland in Canada
for the past 18 months. The contract for West Hercules was
originally due to expire on 31 January 2017.
-Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
May 23, 2016 03:46 ET (07:46 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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