OSLO (Reuters) – Seadrill, a leading offshore oil and gas contractor, expects demand for its services to grow as oil companies became "more comfortable" with oil prices around $70 per barrel, its chief executive said.

Chief executive Alf Thorkildsen said that after a sharp contraction in spending by oil producers when oil tumbled to $40 per barrel, activity has been picking up.

"What we have seen after the summer, which is linked to the oil price, is a significant increase in activity levels but not enough to keep all rigs at work," he said.