SEADRILL has won a four-year contract with Statoil for use of its ultra-deepwater rig West Hercules in Norwegian waters.
The potential contract revenue value is $787million, including $50million to cover mobilisation of the sixth generation rig. The disclosed day rate is $490,000.
Statoil holds an option to extend the contract for a further year if required.
West Hercules is due to start with the Norwegian semi-state petroleum company during Q3 2012, following completion of its current contract with Husky Oil in South China Sea and mobilisation period.
The rig has been working in that sector since its completion in 2008.
For the Statoil work, the rig will be operated by North Atlantic Drilling, Seadrill’s majority-owned subsidiary.
Seadrill’s CEO, Alf C Thorkildsen, said of the Statoil arrangement: “We are pleased to secure a long-term contract for one of our most advanced ultra-deepwater rigs.
“This assignment reflects the growth in demand for premium rigs and allows West Hercules to utilise its deepwater and harsh environment capabilities.”
According to Tim Dodson, Statoil’s VP for exploration, inclusion of this still very new rig in its cadre of preferred mobile drilling units will “provide the necessary flexibility we are looking for”.
For Statoil it is about revitalising the Norwegian Continental Shelf by locating high-value barrels, proving up commerciality of new finds and developing the resource.
“Acquiring this rig is an important contribution to securing Statoil’s rig capacity,” said Mr Dodson.
West Hercules is considered to be the first-available suitable and, crucially, operational, rig of the kind that Statoil now requires. It is capable of deepwater, high pressure/high temperature operations and well completion work.
Besides NCS targets, the plan is to use West Hercules for international operations where an advanced rig is required.
West Hercules is dynamically positioned and its twin derrick means that it can run parallel drilling operations in water depths to 3,000m (about 10,000ft).