ExxonMobil Terminates Transocean Rig

Published at 09:19AM - 24/02/16

ExxonMobil terminates Transocean rig early with no compensation, in a move that the offshore drilling company say is one of convenience.

The cancelled contract covered the lease of Transocean’s GSF Development Driller I, an ultra-deepwater semisubmersible drilling rig, working offshore Angola for the oil and gas supermajor.

ExxonMobil Terminates Transocean Rig

According to Transocean’s February fleet status report, the drilling rig was on contract to ExxonMobil from June 2015 to June 2016 at a day rate of US$370,000.

Transocean have said that they now expect the early termination to happen around the end of May 2016, and completion of the rigs demobilisation by June 2016.

However, the drilling contractor’s fleet status report also shows a second contract with ExxonMobil for the GSF Development Driller I. The report states that the rig was due to start work on the second contract in June 216 directly after the current deal ends.

Further the fleet status report states that the second contract was, due to run for a full year until June 2017 but, at the higher day rate of US$370,000.

No Compensation

Transocean added that in accordance with the contract signed ExxonMobil, no compensation for the early termination will be owed.

The offshore drilling giant stressed, that the ExxonMobil contract is the only one the company held with such terms and that, no other contracts in its current backlog allow “uncompensated cancellation for convenience”.

Transocean has had a spate of drilling rig contract cancellations in recent months. This week the company’s Polar Pioneer semisubmersible arrived back in Norway, after its lease with Shell had been cancelled, due to the supermajor ending its Arctic explorations.

In line with that contract, Shell did pay full cancellation fees to Transocean. To See More On That Story Click Here

ExxonMobil Angola

The GSF Development Driller I had been working offshore Angola in ExxonMobil’s Block 15, also known as Kizomba field.

Located 200 miles (320km) offshore Angola in a water depth of 3,900 feet (1,200m), the field has produced over 1.8 billion barrels of oil equivalent since coming on stream.

Block 15 continues to be developed by ExxonMobil, with the latest subsea satellite additions being borough on stream in April 2015.

At that time president of ExxonMobil Development, Neil Duffin, said: “This exemplifies ExxonMobil’s project management expertise and the capabilities of local suppliers and businesses that helped maximize the value of Angola’s petroleum resources,”

Transocean GSF Development Driller I

The GSF Development Driller I, is an ultra deepwater drilling rig, delivered in 2005 by SembCorp Marine’s PPL Shipyard Singapore.

A semisubmersible design, the GSF Development Driller I has a operational maximum water depth of 7,500 feet (2,286) and a maximum drilling depth of 37,500 feet (11,430m).