Our Arctic Neighbors: Statoil renews leases for two offshore rigs

Norway’s Statoil has signed new contracts for the continued lease of two rigs for offshore use, Statoil said in a release Nov. 11. The contracts are with Houston-based Diamond Offshore for the lease of Ocean Vanguard and with Saipem, a subsidiary of Italy’s Eni, for the lease of Scarabeo 5.

“In December last year we announced that we expected the market to revert to the lower 2006 level and now it has responded to our expectations,” said Anders Opedal, Statoil’s senior vice president for procurement. “We are pleased to have gained more reasonably priced rig capacity so that we can further develop the shelf.”

The Ocean Vanguard deal is valued at $382 million, while the Scarabeo 5 deal is worth $437 million. Both have three-year durations, Statoil said.

“The two rigs are well known for their contributions to our operations on the shelf,” said Oystein Michelsen, Statoil’s vice president for exploration and production Norway. “The flexibility provided by these rigs in terms of conventional drilling, completion, high pressure, high temperatures and deep water are in line with our plans for exploration and production in the future.”

Scarabeo 5 is a fourth-generation semi-submersible rig capable of operating in water depths of up to 6,560 feet and drilling to depths of up to 29,520 feet, Saipem said in a release Nov. 11.

“(The rig) has been working continuously since 1990 in the Norwegian sector of the North Sea, one of the most demanding areas due to strict environmental regulations and harsh weather conditions,” the company said.

—Sarah Hurst