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.
I remember reading about Statoil when they first bought out Brigham and took over the Williston Offices and warehouses. They indicated they were expanding into the United States because the Norway locations were getting to be limited for production in the North Sea. I'm guessing it is very expensive to operate offshore platforms with the prices of oil these days. Maybe they will expand their operations even further in the US?
ReplyDeleteBuried deep in the blog I've mentioned that very possibility: how the Bakken looks compared to deep-sea drilling.
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