Reuters via Rigzone is reporting:
Norwegian energy firm Statoil extended the suspension of three drilling rigs on Friday as it battles to cut costs in the face of shrinking margins, squeezed by a 35 percent drop in crude oil prices since June.
Statoil, which had suspended more than a third of its exploration fleet this year, is upping its efforts to preserve cash having already been selling assets to pay for investments and dividends even when oil was over $100 per barrel.
The group signed contracts for many of its rigs at the top of the market for near record prices, but is suspending the rigs just as market rates tumble, making it impossible to sublet the vessels.
To some extent, in another time and place, this might be a story somewhat unique to Statoil. But certainly the current slump in prices is exacerbating things for Statoil.
