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

Beach Energy extends success in Cooper western flank

03/31/2014 Beach Energy Ltd., Adelaide, has extended its successful run of oil discoveries in the western flank Cooper-Eromanga basin play in South Australia ...

White House eyes steps to curb oil, gas methane emissions

03/29/2014 The White House announced additional steps to reduce methane emissions from oil and gas operations as part of a broader strategy. They included reg...

Tullow advances Kenya exploration program

03/28/2014 Tullow Oil PLC has moved forward with exploration and appraisal activities conducted by four rigs operating on Blocks 10BB and 13T onshore Kenya.

Lundin completes appraisal wells for Johan Sverdrup

03/28/2014 Lundin Norway AS, a wholly owned subsidiary of Lundin Petroleum AB, has completed Johan Sverdrup appraisal wells 16/3-8 S and 16/3-8 S T2 in the ea...

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