STATOIL has awarded Songa Offshore a $2.47billion contract to build two new semi-submersible drilling rigs for Norwegian Continental Shelf (NCS) conditions.
And the value of the contract could double to almost $5billion, should the semi-state Norwegian oil company exercise an option to order two further rigs from the drilling contractor.
The first pair of so-called category-D rigs will go on to eight-year charters when completed and are part of a Statoil programme to “rejuvenate”.
The oil company holds four three-year options per rig, in practice a 20-year contract for each.
According to Jon Arnt Jacobsen, Statoil’s chief procurement officer, the bid process was launched less than two years ago and had been a “success story”.
He said: “Many bidders have taken part in this process and the competition has been keen.”
In the event, it was what is essentially a Norwegian company that won the day in the face of international competition.
Songa, listed in Oslo, shifted its doorplate to Cyprus in 2008.
Capable of operating in 100-500m of water, the purpose-designed category-D units will be equipped to drill wells down to 8,500m.
They have been specifically conceived to work mature fields – primarily drilling production wells and completing wells, so enabling Statoil and its partners to extend field lives.
The massive Troll field will be the first to see category-D rig deployments. This huge asset remains the very cornerstone of Norwegian gas production.
It also happens to be one of the largest oil fields on the NCS, averaging more than 120,000 barrels per day last year.
Statoil regards rig capacity on the NCS as limited and says increased capacity is essential to ensure enhanced recovery.
The new rigs are expected to operate 20% more efficiently than conventional units and the first pair should be up and running from 2014.
Songa has awarded the main fabrication contract to the DSME yard in South Korea, while Aker Solutions has been picked as the supplier of the drilling equipment.
The project concept and design has taken one year, and the implementation period is expected to take three years, including detail engineering, construction and transportation to the NCS. Mobilisation from South Korea to the North Sea is included in the contract, with handover scheduled for the second half of 2014.
Although Statoil is considering two more category-D rigs and has secured two options with Songa, the company said it was continuing evaluation of other bids tabled and a contract could be awarded during the second half of 2011. It is also debating taking an ownership position in the rigs.
Recommended for you
