Songa Offshore reported that its 100% owned subsidiary, Songa Rig AS, has received a Letter Of Award (LOA) from Statoil for the use of Songa Trym for a 3 years firm plus 2x1 year option Drilling Contract on the Norwegian Continental Shelf. The LOA is conditional to mutual agreement of contract terms between the parties which is anticipated to be concluded within 30 days. The firm part of the contract has an aggregated revenue value of approximately USD 462 million inclusive a rig upgrade element and an associated yard stay prior to contract commencement.

The yard stay and contract with Statoil will commence in direct continuation of the rig's current commitment and subsequent demobilization from Statoil Troll license mid-2012.

Songa Offshore will undertake full rig management and operations responsibility of the Songa Trym from current Odfjell Drilling Management at time of transition between contracts.

Tags: Songa Offshore ASA, Statoil