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Scarabeo 5 (Image courtesy of Saipem)

Statoil will suspend its contract with Saipem for the Scarabeo 5 rig from fall of 2014 to the end of the year, the company said on Friday.

According to Statoil, the suspension is due to over capacity in its rig portfolio.

The Scarabeo 5 will be laid up for the suspension period.

Statoil plans to re-commission the rig after the new year.

The Scarabeo 5 is currently operational in Visund and is scheduled to complete its work there in August.

Statoil head of rig procurement Tore Aarreberg said, “We subject our rig portfolio to continuous assessment, so that we are sure of having the right rig on the right job at all times. We are planning for the rig to be in operation again after the turn of the year. We are pleased with Saipem as a supplier. They help us reach our goals, and we have a good cooperation with the supplier.”

The rig is contracted until 2017.