Statoil Cancels Rig Contract, COSL Cuts Jobs

 

Statoil announced the termination of contract since 8 October 2014, which is 13 months before the expiry date. Statoil explained that contract was canceled, as company has not managed to find alternative activity for the semi-submersible drilling rig. 

 

The rig was one of three contracted from COSL Drilling Europe, a subsidiary of China Oilfield Services Limited (COSL). The contract for the COSL Pioneer was set to expire in August 2016.

 

“This is the heaviest day in our company’s relatively short history. With this cancellation, we come to a point where we have to make a powerful downsizing both onshore and offshore,” said Jørgen Arnesen, CEO of COSL Drilling Europe said in a statement, Norwegian news website Sysla has reported.

 

According to Sysla, COSL will now be forced to lay off 209 offshore workers and 20 employees onshore. In addition, some employees will be offered other positions within the company.