Statoil Suspends Rig Contract, Submits Amendment to PDO for Gullfaks Licence

Norway’s Statoil said on Wednesday it suspended the Saipem’s Scarabeo 5 drilling rig, as a consequence of overcapacity in its rig portfolio. The Norwegian company continues in its attempt to cut costs, adjusting to the current low oil price environment.  

“We regret the need to suspend Scarabeo 5, but we will do our utmost to resume our drilling operations earlier than planned at the time of suspending the rig,” Jon Arnt Jacobsen, senior vice president of Procurement in Statoil, said in a note, explaining that the suspension will last from mid-August to March 2016. 

On Tuesday, Statoil submitted an amendment to the Plan for Development and Operations (PDO) for the Gullfaks licence to the Ministry of Petroleum and Energy for phase 1 of the Shetland/Lista development.

“Targeted efforts are underway to cut costs and increase the profitability of our projects. By utilising the existing infrastructure we manage to recover new resources at a lower cost, thus sustaining profitable production and long-term activities on the Norwegian continental shelf (NCS),” Ivar Aasheim, senior vice president for field development on the NCS, said in a separate press release.

The development concept for the Phase 1, which is expected to add 18 million barrels of oil equivalent, does not comprise new wells.  

’It is based on reuse of existing wells (a total of 15) from the Gullfaks platforms, and will not require any new infrastructure. The profitability of the project will thus be very good.’