Statoil Awards NOK30 Billion Drilling Contracts Offshore Norway

Norwegian oil giant Statoil ASA (STO) said Tuesday it has awarded contracts worth 30 billion kroner ($5.03 billion) for drilling services on the Norwegian continental shelf for a period of up to ten years, its biggest contract award offshore Norway since 2010, and said this was a move to secure a long-term perspective for the offshore supplier industry.

Statoil and its license partners awarded the contracts to KCA Deutag, Odfjell Drilling and Archer Ltd. (ARCHER.OS) for drilling of new wells, plugging of old wells, and workover and maintenance of drilling facilities on 18 of Statoil's 20 fixed oil and gas installations offshore Norway.

The contracts are for four years, with three optional two-year extensions, totaling ten years. The contracts will employ about 2,000 people during this period, Statoil said.

"Efficient drilling and well services on existing fields are important to maintain production on the [Norwegian continental shelf] and to deliver according to Statoil's production forecast of 2.5 million barrels of oil equivalent per day in 2020," said Margareth Oevrum, Statoil's executive vice president for the Technology, Projects and Drilling business area, in a statement.

-By Kjetil Malkenes Hovland, Dow Jones Newswires: [phone]; [e-mail]