Lower rig hire rates

November 11, 2009, 09:54 CET

Scarabeo 5 is one of two rigs now being hired by Statoil.

(Photo: Trond Sigvaldsen)

The contracts have been signed with Diamond Offshore for the hire of Ocean Vanguard and with Saipem for the hire of the rig 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. We are pleased to have gained more reasonably priced rig capacity so that we can further develop the shelf,” says Anders Opedal, Statoil’s senior vice president for Procurement.

The Ocean Vanguard deal is valued at USD 382 million. It has duration of three years with a one-year option.

The deal for Scarabeo 5 is valued at USD 437 million and also has a three-year duration and one-year option.

These rates set a new price level for rigs in the exploration and completion segment.

“The two rigs are well known for their contributions to our operations on the shelf. 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,” says Øystein Michelsen, Statoil’s executive vice president for Exploration & Production Norway.