News Ticker

Statoil Cancels Rig Contract 13 Months Early. Why? No Work.

Facebooktwittergoogle_plusredditpinterestlinkedin

Statoil announced Wednesday that it has decided to cancel the contract for the COSL Pioneer rig 13 months before the August 2016 expiry date, due to an empty work backlog. Upstream online reports that COSL Drilling Europe is has been forced to lay off 229 rig staff as a result of Statoil’s decision.

The rig has been suspended since October 8, 2014, and the Norwegian major has not managed to find alternative activity for the rig during the intervening period.

enter image description here

The COSL Pioneer; Source: fleetmon.com

“We regret the need to have to cancel this contract and wish to emphasise that this is not due to how the rig has delivered,” says supply chain senior vice president, Jon Arnt Jacobsen.

COSL Pioneer and its crew have demonstrated a good safety culture and delivered efficient drilling operations to Statoil. Cancellation is a consequence of overcapacity in the rig portfolio,” he continued.

In July 2014, Statoil announced that Saipem’s Scarabeo 5 would be temporarily suspended and taken out of operations at the end of September 2014.

enter image description hereThe Scarabeo 5; Source: teamwanted.nl

COSL Pioneer and Scarabeo 5 had working on the Norwegian continental shelf. Statoil said last September that the rig suspensions would not affect the company’s output targets or scheduled exploration activity on the NCS.

Facebooktwittergoogle_plusredditpinterestlinkedin

Leave a comment

Your email address will not be published.


*