Norwegian energy firm Statoil extended the suspension of three drilling rigs as it battles to cut costs in the face of shrinking margins, squeezed by a 35 per cent drop in crude oil prices since June.

Statoil, which had suspended more than a third of its exploration fleet this year, is upping its efforts to preserve cash having already been selling assets to pay for investments and dividends even when oil was over $100 per barrel.

The group signed contracts for many of its rigs at the top of the market for near record prices, but is suspending the rigs just as market rates tumble, making it impossible to sublet the vessels.

“When the rig contracts were signed it was challenging to ensure sufficient rig capacity,” Statoil procurement chief Jon Arnt Jacobsen said in a statement. “Today the activity is facing lower margins, a generally high cost level and subsequent lower profitability.”

Statoil has also struggled with poor exploration results this year, as key wells in Angola, the Gulf of Mexico and the Norwegian Arctic disappointed.

Among individual rigs, Statoil said it would suspend COSL’s Pioneer for another seven months, Saipem’s Scarabeo 5 by another month and a half and Songa’s Trym for another month. All three were earlier suspended until the end of the year.