* Extends 2 deals for 3+1 yrs for drilling offshore Norway

* Statoil says day rates have come back down to 2006 level

* Drilling activity in 2010 seen down, rig demand unclear (Adds background, quotes, shares)

By Richard Solem and Joergen Frich

OSLO, Nov 11 (Reuters) - Statoil (STL.OL: Quote, Profile, Research) said on Wednesday it has secured a cut back to 2006 levels in the rates it is prepared to pay to hire drilling rigs.

The Norwegian gas and oil producer last December put a hold on rig hire tendering for operations on the Norwegian continental shelf because of high rates.

Statoil said it had now returned to the market after rig owners Saipem (SPMI.MI: Quote, Profile, Research) of Italy and Houston-based Diamond Offshore (DO.N: Quote, Profile, Research) agreed to lower price demands by 20-30 percent.

Statoil said it agreed two three-year extensions, one for Saipem's 'Scarabeo 5' for $437 million, and one for Diamond Offshore's 'Ocean Vanguard' for $382 million. Both have options for a further one-year extension.

"These are reasonably long contracts, and Ocean Vanguard's $350,000 is actually a pretty good day rate for that rig," said offshore rig analyst Frank Harestad at Pareto Securities.