Statoil Ends COSL Innovator Rig Contract
Norway’s Statoil ASA (STOHF) has decided to end its contract with a drilling rig operated by China Oilfield Services Limited, or COSL, three months after a worker died when the rig was hit by a wave during a storm in the North Sea.
“The conditions for terminating the contract signed with COSL Offshore Management AS have in our opinion been met, and we therefore choose to use our contractual right to terminate the contract,” says Geir Tungesvik, Statoil’s senior vice president for drilling and well.
In addition Statoil has decided to stop drilling operation with the sister rig COSLPromoter when it is safe to discontinue well operations. This is done in order to enable COSL to implement the necessary actions in order to fulfil the requirements of the contract.
The decision may have some short-term consequences for planned drilling activities, but will not have impacts on long-term production on the Troll field. The plans made by the licence for gas and fluid production from the oil zone remain firm.
The giant Troll field is the cornerstone of Norwegian natural gas production, and contains about 40% of the country's total gas reserves.
China Oilfield Services operates three drilling rigs, the COSL Innovator, the COSL Promoter and the COSL Pioneer. The company laid off 229 workers last June, after Statoil terminated the contract for COSL Pioneer, citing an overcapacity of drilling rigs.
COSL said in a separate stament it will seek legal actions to protect its rights and interests if necessary.
