Fred Olsen scraps rig option

by on November 21, 2012 3:49 pm BST

It follows a recent award from Chevron of a five-year contract worth more than $1 billion for the first newbuild, the semi-submersible Bollsta Dolphin, to be used on drilling of development wells at the US supermajor’s Rosebank project West of Shetland.

The semisub is being built at the South Korean yard at a total cost of $740 million, including the $40 million installation of a second blowout preventer and an extra riser on the newbuild, due for delivery in the first quarter of 2015.

However, the Norwegian rig player has apparently been unable to firm up work for a possible second unit after announcing in a terse statement that it would not take up the option, which had been extended to the second half of November.

The contractor was earlier reported to be in contention for a major drilling deal with Husky Energy for work off Canada and Greenland, which was last week awarded to compatriot rival Seadrill.