Perenco cancels jack-up contract with Maersk Drilling

Oil and gas company Perenco has decided to cancel a jack-up drilling contract it has with Maersk Drilling, citing delays with rig delivery.

Maersk Drilling said Wednesday it had received notification that Perenco was canceling the previously announced three-well contract for the jack-up rig Maersk Resolute in the UK North Sea.

According to Perenco, as shared by the drilling company, the cancellation is due to the fact that the scope of Maersk Resolute’s previous contract was extended beyond the original schedule, causing delayed arrival for Perenco’s drilling campaign which was originally expected to start in October 2019.

“The duration of the three-well contract with Perenco was estimated at 150 days. The contract cancellation does not impact the guidance for 2019,” Maersk Drilling said.

Related: Maersk Drilling expects further rise in demand for hi-spec jack-ups

The Danish offshore drilling contractor had announced the Perenco deal back in July. The rig was to be moved to the North Sea to work on the Wollaston and Ravenspurn fields for an estimated 150 days, starting in October this year. The contract included eight one-well options.

Norwegian rig broker Bassoe Offshore had estimated the dayrate at around $85,000.

The Maersk Resolute is a harsh-environment CJ50 jack-up that was delivered in 2008. Following the completion of its latest contract, the rig will be warm-stacked, Maersk Drilling said.

Separately, Maersk Drilling on Tuesday afternoon said it had agreed to sell the Maersk Completer jack-up to Shelf Drilling for 38 million. More on that here.

Offshore Energy Today Staff

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