Chevron cuts Wheatstone rig contract by a year

Atwood Oceanics said that the company has entered into an amendment to its contract for its semisubmersible drilling unit, the Atwood Osprey. 

Atwood Osprey, that is contracted to Chevron for tit giant Wheatstone LNG development, parted several mooring lines and drifted approximately three nautical miles from its original position during Cyclone Olwyn, which impacted the northwest coast of Australia on March 12, 2015.

The duration of the force majeure event and resultant repairs necessitated by the damage incurred from the cyclone have triggered termination rights in relation to which Chevron and Atwood Oceanics have agreed to a reduction in the term of the contract by one year with contractual rates remaining unchanged, Atwood said in a statement.

It is expected that repairs for damage sustained by the rig and required regulatory approvals will be completed by April 30, it added

Image: Atwood Oceanics