Songa Offshore Gets Rig Deal From Statoil Worth $409 Million

   DOW JONES NEWSWIRES 
 

Norwegian oil rig operator Songa Offshore SE (SONG.OS) said Thursday it has been awarded a $409 million for the Songa Delta rig from Statoil ASA (STO).

 
   MAIN FACTS: 

-Its Songa Rig AS unit has received a Letter Of Award (LOA) from Statoil for the use of Songa Delta for a 3 years firm plus 1 year option drilling contract on the Norwegian Continental Shelf.

-The LOA is conditional to mutual agreement of contract terms between the parties.

-The firm part of the contract has an aggregated revenue value of $409 million inclusive of a rig upgrade element and an associated yard stay prior to contract commencement.

-The contract also includes an option to extend the firm period of the contract, and this option will have to be exercised prior to the contract commencement.

-The yard stay and contract with Statoil will commence in direct continuation of the rig's current commitment and subsequent demobilization from Det Norske/Wintershall late second quarter/early third quarter 2012.

-Songa Offshore will undertake full rig management and operations responsibility of the Songa Delta from current Odfjell Drilling Management at time of transition between contracts.

-Shares closed Wednesday at NOK32.10.

-By Dominic Chopping, Dow Jones Newswires; [phone]; [e-mail]