Oil giant Shell has terminated a rig contract with Transocean, for the Polar Pioneer semi-submersible drilling unit.
The oil company had used the rig for its drilling campaign offshore Alaska, but in September it said it would stop its Alaskan operations for the forseeable future, citing bad drilling results and uncertain regulatory environment.
The original rig contract was meant to expire in July 2017, however, as Shell will not be drilling in the region next year, it opted to terminate the deal with Transocean.
In a statement on Monday, Transocean said it would be compensated for the early termination through a lump-sum payment that includes adjustments for reduced operating costs and demobilization to Norway.
Offshore Energy Today Staff