StatoilHydro drops rigs procurement for Norwegian Continental Shelf

Uchenna Izundu
International Editor

LONDON, Dec.24 -- StatoilHydro cancelled its rig procurement for operations on the Norwegian Continental Shelf because of high costs and the global economic uncertainty that has dampened oil prices.

The company said it is focused on reducing costs and determining priorities.

On Aug. 25, StatoilHydro received tenders from 15 contractors for 28 rigs, including semi-submersibles and jack ups. Contracts were to start at the end of 2012.

But back when the tenders were made, rates were higher because of greater demand for rigs in those days of higher oil prices. Since then, oil prices have dropped 60%, reducing the number of drilling prospects. As a result, StatoilHydro asked for updated tenders, including reduced rig rates, by Dec. 1.

"Despite the reduction in the prices offered, there is still a considerable gap between the tenders and the expectations we have concerning the rates," said Anders Opedal, head of procurements in StatoilHydro. "We have therefore decided to terminate the procurement process."

Contact Uchenna Izundu at uchennai@pennwell.com

Related Articles

Tethys reports second successful gas well in Kazakhstan

03/20/2014 Tethys Petroleum Ltd. reported the success of the second shallow gas exploration well of its 2014 program on the Akkulka block in the Caspian regio...

BOEM: Firms bid $850 million in high bids in central gulf lease sale

03/19/2014 The US Bureau of Ocean Energy Management reported that its central Gulf of Mexico Lease Sale 231 received 380 bids from 50 companies on 326 blocks,...

CNOOC makes gas discovery in Qiongdongnan basin

03/19/2014

CNOOC Ltd. has made a natural gas discovery in the east Lingshui Sag of the deepwater area in the South China Sea’s Qiongdongnan basin.

Cairn, FAR to drill exploration wells offshore Senegal

03/19/2014

FAR Ltd., Perth, will participate in the drilling of two deepwater exploration wells offshore Senegal next month.

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected