Norway’s Statoil extended its suspensions of the COSL Pioneer, Scarabeo 5 and Songa Trym vessels Monday due to “overcapacity” in its rig portfolio.
Scarabeo 5, COSL Pioneer and Songa Trym were initially suspended from October 5, October 8 and 20 November 20 until the end of the year.
COSL Pioneer will be suspended for an additional seven and a half months.
The suspension period for Scarabeo 5 will be extended by one and a half months and by one month for Songa Trymand.
Songa Trym’s suspension may be reduced, or avoided, if the company is able to accelerate drilling activities.
“When the rig contracts were signed it was challenging to ensure sufficient rig capacity,” Statoil procurment head Jon Arnt Jocobsen said.
Statoil said the extensions were also necessary because it could not mature alternative tasks for the rigs.
High drilling costs and low oil prices have made it “more demanding to mature profitable drilling targets,” Statoil said.
“These measures are necessary due to the overcapacity of rigs compared to the assignments we are prioritizing. This situation is unfortunate, and we are doing what we can to minimize the extent of the suspensions,” Jacobsen said.