Statoil prematurely ends Stena Drilling rig charter

Norway’s oil and gas firm Statoil has decided to cancel a mobile rig contract with Stena Drilling about three months ahead of the contract expiry date.

The mobile rig, Stena Don, has been on contract to Statoil since 7 February 2014, performing operations for the Troll and Fram licences. The original contract termination date is 7 February 2017.

“The cancellation will take effect after the plugging activity on the Troll field has been completed, in early November. After this, Stena Don was committed to the Fram licence,” Stavanger-headquartered Statoil stated.

Statoil added that it does not have any other activities where the available capacity can be used.

The Safe Union of Norway stated on its website that the early contract termination will potentially lead to a loss of 180 jobs.

The union expressed hope that Stena Drilling will maintain the rig’s readiness to take up new assignments offshore Norway, once the rig is available in November, so as to avert the job cuts.

Posted 26 October 2016

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Lee Hong Liang

Asia Correspondent