Statoil to Suspend Saipem Rig Contract

Norwegian oil major Statoil said on Wednesday it will suspend a rig contract with Italy's Saipem due to overcapacity in its rig portfolio.

The suspension of Saipem's Scarabeo 5 rig will take effect from the middle of August, and will last until March 1 next year, Statoil said in a statement.

"We regret the need to suspend Scarabeo 5, but we will do our utmost to resume our drilling operations earlier than planned at the time of suspending the rig," it said.

Reporting by Stine Jacobsen