ExxonMobil terminates Seadrill’s drillship contract

U.S. oil company ExxonMobil has terminated a drillship contract it had with Seadrill Partners, a subsidiary of the offshore driller Seadrill.

The drilling company on Friday said it had received a notice of termination for the West Capella drillship.

According to Seadrill’s fleet status report, the rig’s contract with ExxonMobil in Nigeria was to expire in April 2017.

As a result of early termination, Seadrill Partners said it would receive $125 million in two equal installments, the first in the second quarter of 2016 and the second in the first quarter of 2017, plus other direct costs incurred.

“The West Capella is currently being marketed for new work and is expected to be in Tenerife during its idle period,” the driller said on Friday.