Petrobras terminates Borgny Dolphin rig contract

Brazilian oil giant Petrobras has terminated a rig contract with Fred. Olsen Energy ASA.

In its operational update Fred. Olsen Energy ASA said its subsidiary Dolphin Drilling reached an agreement with Petrobras to suspend operations of the Borgny Dolphin rig.

Under the original contract, the rig was to stay in Brazil until end September 2014.

The semi-submersible rig has been drilling for Petrobras in Brazilian waters since 2008.  The contract will cease with effect from May 2014.

The rig, built in 1977, and upgraded in 2010, will be demobilized and re-exported from Brazil, Fred. Olsen Energy said.