Talisman Sinopec terminates ‘Archer Emerald’ contract (UK)
- Business & Finance
Archer, a global supplier of drilling and well services, has received a thirty-day notice of early termination from Talisman Sinopec Energy UK Limited of its modular rig contract for the Archer Emerald.
The effective date of termination is expected as the 29 of January 2015. The original two-year contract, that was supposed to mark the first operation using the Archer Emerald modular rig on the UK continental shelf, was valued at approximately $96 million. The contract was scheduled to start during the first quarter of 2016 following a period of rig interface modification.
The company says that the early termination fee due to Archer under the contract will range between $34 million and $43 million.
Archer Emerald is a modular drilling rig (MDR) designed to stand alone and can be rigged up on all offshore installations and perform all the drilling services from the top hole to TD, completions and Plug & Abandonment.
According to the company, the modular rig package is lighter and more compact than alternatives, reducing the platform size required, the size of the drilling crew and the construction costs. It can be tailored to meet well-specific requirements.
Offshore Energy Today Staff