UPDATE 1-Statoil extends three rig contracts for $1.6 bln

* Rig use contracts cover three-year period

* To help to achieve production targets by 2020

(Adds details)

OSLO, Oct 3 (Reuters) - Norwegian oil and gas firm Statoil

said on Wednesday it had signed contracts to extend use of three rigs offshore Norway to help to achieve its production targets by 2020.

Statoil is aiming to raise its production from around 1.9 million barrels of oil equivalent a day in 2010 to more than 2.5 million barrels in 2020.

The deals, worth 9.2 billion Norwegian crowns ($1.62 billion) include extended use of the Bideford Dolphin rig owned by Fred Olsen-owned Dolphin Drilling, the Stena Don rig owned by Stena Drilling , and the Scarabeo-5 rig, owned by Saipem .

"The rig capacity we have secured in these contracts will contribute to achieving our production targets towards 2020 through production drilling on several of our legacy assets and starting production from fast-track developments," Statoil's Vice-President for Development and Production Oestein Michelsen said.

The contract period covers three years, and Statoil said it also secured an option to extend the use of Stena Dong and Scarabeo-5 for another year, and Bideford for another two years.

Statoil plans to use Bideford Dolphin for production drilling on the Tordis and Vigdis fields, as well as the Statfjord field in the North Sea.

Stena Don rig is expected to drill on the Troll field, as well as on the fast-track development Fram H-Nord, and Scarabeo-5 for drilling and completion of production wells on various fields.

The renewed use period for Bideford Dolphin rig starts in the first quarter of 2014, Stena Dong in the fourth quarter of 2013, and Scarabeo-5 in the third quarter of 2014.

($1 = 5.6938 Norwegian crowns)

(Reporting by Nerijus Adomaitis. Editing by Jane Merriman)

((nerijus.adomaitis@thomsonreuters.com)(+47 9027 6699)(Reuters Messaging: nerijus.adomaitis.thomsonreuters@reuters.net))