UPDATE 1-Statoil gets lower prices on drilling rigs

* Hires 2 rigs for 3+1 yrs for drilling offshore Norway

* Saipem's (SPMI.MI) 'Scarabeo 5' for $437 mln

* Diamond Offshore's (DO.N) 'Ocean Vanguard' for $382 mln

* Says rates have come down to 'new price level' (Adds further details)

OSLO, Nov 11 (Reuters) - Norway's Statoil (STL.OL) said on Wednesday it had entered into contracts with Italy's Saipem (SPMI.MI) and Houston-based Diamond Offshore (DO.N) for two drilling rigs to work offshore Norway at a lower price than earlier deals.

"In December last year we announced that we expected the market to revert to the lower 2006 level and now it has responded to our expectations," Statoil said in a statement.

"We are pleased to have gained more reasonably priced rig capacity so that we can further develop the (continental) shelf," said Anders Opedal, Statoil's senior vice president for procurement.

Both deals had a duration of three years with a one-year option.

"These rates set a new price level for rigs in the exploration and (well) completion segment," Statoil said, adding the rigs had been on assignment for Statoil earlier.

"The flexibility provided by these rigs in terms of conventional drilling, completion, high pressure, high temperatures and deep water are in line with our plans for exploration and production in the future," it said. (Reporting by Oslo newsroom; Editing by Greg Mahlich)