Transocean sees early end of contract with Statoil

  • Business & Finance

Statoil, a Norwegian oil major, has decided to cancel the contract with Transocean, a drilling contractor, for the drillship Discoverer Americas.

The drillship has been on contract with Statoil since 2009, supporting Statoil’s exploration activities in East and North Africa and the Gulf of Mexico.

Statoil was in the current environment unable to secure additional activity for the rig for the remainder of the contract period, ending in May 2016, the Norwegian giant said.

“Discoverer Americas has been a very good performer for Statoil, contributing to test deep-water and ultra-deep water prospectivity in Tanzania, Egypt, and the Gulf of Mexico and appraising the multiple high-impact discoveries in Tanzania.

“All operations were performed with solid drilling efficiency and a good safety culture. Without additional activity lined up, we unfortunately have to let the rig go prior to contract end,” says Tore Aarreberg, head of rig procurement.

Transocean says it will receive an early termination payment fully compensating the company as provided for in the contract.

In the second half of 2015, Statoil cancelled two rig contracts; one for COSL Pioneer some 13 months before the expiry date in August 2016, and the other one for Songa Trym, four months before the expiration of the contract on March 4, 2016. The company explained the cancellations were due to overcapacity in its rig portfolio and inability to find work for those rigs.

In addition, in July 2015, the company suspended the contract for Saipem’s Scarabeo 5 rig until March 1, 2016.

Offshore Energy Today Staff

 

Related news

List of related news articles