Statoil of Norway takes on cost of cancelling contract for Angola

24 November 2014

Statoil ASA of Norway will take a charge of US$350 million as a result of the cancellation of a lease of an oil exploration rig for Angola, two years before the end of the contract, the group said in a statement.

The cost stems from the fact that the Norwegian group has cancelled the contract for the Stena Carron drilling rig, which was due to end in 2016 and was worth US$700 million, after the operation carried out in the sea off ​​Angola provided “disappointing results.”

Statoil had already cancelled the contracts for four rigs and canceled a fifth in the Norwegian Sea this year, decisions that came after closer monitoring of investments made by the state group.

The contract for the Stena Carron platform, with Stena Drilling, a subsidiary of Stena AB group, was cancelled after a second hole was drilled, Jacaré, in Angola, which also had “disappointing results.”

Statoil will pause its exploration programme in the Kwanza basin, although it is involved in four additional wells in the area, one of which is currently being prospected by France’s Total. (macauhub/AO)