Statoil terminates rig contract with COSL

Statoil said that its contractual right allowed it to terminate the chartering contract of the rig COSLInnovator, according to Geir Tungesvik, Statoil’s senior vice president for drilling and well.

In addition, Statoil also decided to stop drilling operation with 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.

Both rigs are operating in the Troll Field of Norway. The remaining term of the two drilling contracts is four years and eight months, and five years and one month, respectively.

“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,” Statoil stated.

Hong Kong-listed COSL said it “strongly disagrees with the decision of Statoil and will make active communication with Statoil to solve differences.” And if necessary, “legal actions will be taken to protect the interests of the company”.

COSL added that the operational results of the company will be materially affected.